Today: February 12, 2016, 11:32 pm
  
Finance

Global airlines market: $848.2 billion industry forecast by 2018

companiesandmarkets.com
companiesandmarkets.com
Global Airlines - a new market research report on companiesandmarkets.com

 

PR-Inside.com: 2014-04-15 17:58:03
The Global Airlines industry has taken off after suffering massive losses during the global economic downturn. Despite the large decline in revenue at the beginning of the period, industry revenue is estimated to increase at an annualized rate of 2.9% over the five years to 2013. A sense of normality has returned to the industry and revenue growth is expected to be more stable in 2013, increasing 2.8% to $711.0 billion.

Conditions have greatly improved since 2009, which was the industry´s worst year in at least two decades. The easing of average airfares and declining passenger numbers during the recession resulted in decreasing revenue. The total number of global tourist arrivals declined 3.8% in 2009, with a stronger decline in international flights compared with domestic. As consumers tightened their belts in light of a global downturn that decreased employment and disposable income levels, vacation and discretionary travel declined. In addition, the number of business travelers, who usually pay a premium for tickets, decreased as businesses cut travel budgets, which placed further downward pressure on revenue. Consequently, airlines participated in aggressive price wars, offering record-low prices. The combined effect of fewer passengers and easing prices was a massive contraction in revenue, amounting to 17.3% in 2009.

Most major airlines soaked up losses during the global downturn and returned to profitability by the end of 2009, although margins were extremely thin. Airlines desperately attempted to improve margins through higher prices, increased fees, capacity adjustments and code-sharing agreements. Overall, the industry´s profit margins improved from -0.2% of revenue in 2008 to 3.4% in 2013. Margins and revenue are expected to rise over the next five years as economic conditions improve and oil prices, which directly impact jet fuel prices, become less volatile.

Over the five years to 2018, industry revenue is expected to increase at an annualized rate of 3.6% to $848.2 billion. Growth will be favorable compared with the past five years, with passenger numbers expected to rise as income levels increase worldwide. However, high global competition among airlines will hinder revenue growth. Increased merger and acquisition activity is expected over the next five years, with the number of airlines forecast to decline at an annualized rate of 0.2%.

Click for report details: www.companiesandmarkets.com/Market/Aerospace/Market-Research/Glo ..

Browse all Aerospace Market Research Reports www.companiesandmarkets.com/Market/Aerospace/Market-Research?aCo ..

Browse all Aerospace Company Profile Reports www.companiesandmarkets.com/Market/Aerospace/Company-Profile?aCo ..

Browse all Latest Market Research Reports www.companiesandmarkets.com/Market/All/Market-Research?aCode=f3f ..

About Us
Companiesandmarkets.com is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles, Companiesandmarkets.com’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.


Press Information


Published by
Mike King
London: +44 (0) 203 086 8600
e-mail
www.companiesandmarkets.com



# 551 Words
Related Articles
 
More From Finance
Arizona Real Estate Stats 2015
COMMENTARY by Tom Ruff of The Information Market Permission is granted only to ARMLS® Subscribers for reproduction with attribution [..]
Investing.co.uk Announces New Trader Counsel Services
LONDON - Jan. 25, 2016 - British financial news source Investing.co.uk has announced that it will now be offering the [..]
Credit-Yogi.com Offers Free Advice For Getting Completely [..]
Everyone has some degree of debt to deal with. Some folks have a lot of it, and they need to [..]
Offshore Processing slashes credit card processing costs [..]
High risk and high volume merchants engaged in unconventional trades, such as Adult Content, Adult Goods, Online Casinos, Online [..]
Real-Estate-Yogi Offers Free Advice to Returning Veterans [..]
Veterans of the United States are returning from active duty and need places to live. It is up to lenders [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.