Press release
Airlines Market: Major Trends Reshaping the Future of the Industry
Airlines
What Will the Airlines Industry Market Size Be by 2025?
In recent times, there's been substantial growth in the airlines market size. The market size is projected to expand from $554.53 billion in 2024 to $598.81 billion in 2025, representing a compound annual growth rate (CAGR) of 8.0%. This surge seen in the historical timeframe can be credited to multiple factors including deregulation of the airline industry, globalization and open skies agreements, economic shifts, strategic partnerships and consolidations, along with a transformation in consumer preferences.
What's the Long-Term Growth Forecast for the Airlines Market Size Through 2029?
Predictions show a robust rise in the size of the airlines market over the upcoming years, swelling to $845.97 billion in 2029 with a compound annual growth rate (CAGR) of 9.0%. The expansion expected in the forecast period is credited to recovery from global incidents, changes in travel regulations, emphasis on sustainability, the need for high-end services, and regional market growth. Key trends to watch during the forecast period encompass digital transition, eco-friendly practices, customization in customer experience, technological advancements, and health and safety protocols.
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What Are the Key Growth Drivers Fueling the Airlines Market Expansion?
The growth of the airline industry is presumed to be driven by the surge in air travellers. An air passenger is referred to a person who is journeying via aircraft. Aircraft transport both individuals and cargo across the world. This mode of transportation plays a crucial role in affecting a region's socio-economic development and sustainability. For instance, Eurostat, the statistical body of the European Union, situated in Luxembourg, reported in October 2024, that during the initial three months of the year, there was a carriage of 198 million air passengers across the EU. This was an ascent of 11.5% as compared to the corresponding period in the previous year, 2023. Therefore, this rise in air travel is fuelling the expansion of the airline sector.
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What Are the Key Trends Driving Airlines Market Growth?
One major trend emerging in the airline industry is the formation of strategic alliances. These partnerships are being pursued by numerous airlines with the aim of consolidating their influence in the market. For example, in November 2023, Air India, a leading Indian airline, entered into a collaboration with Alaska Airlines, a prominent American airline known for its passenger and cargo flights. This partnership will provide Air India passengers with smooth connectivity to and from 32 different locations across the US, Mexico, and Canada. Similarly, in January 2023, the Air France-KLM Group, a renowned French airline, allied with Delta Airlines, an American airline, and Virgin Atlantic, a top-rated UK airline, to create a leading global partnership. This cooperation will offer passengers more flexible flight scheduling options and both entities will strive to make flying with any airline a convenient and trustworthy experience.
How Is the Airlines Market Segmented?
The airlines market covered in this report is segmented -
1) By Type Of Transport: Domestic, International
2) By Size: Narrow Body, Wide Body, Regional And Business Jet, Freighter
3) By Application: Passenger, Freight
Subsegments:
1) By Domestic: Scheduled Domestic Flights, Charter Domestic Flights
2) By International: Scheduled International Flights, Charter International Flights
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Which Companies Are Leading the Charge in Airlines Market Innovation?
Major companies operating in the airlines market include Air France-KLM S.A., American Airlines Group Inc., Ana Holdings Inc., British Airways PLC., Delta Air Lines Inc., Deutsche Lufthansa AG, Hainan Airlines Co. Ltd., Japan Airlines Co. Ltd., LATAM Airlines Group S.A., Qantas Airways Limited, Ryanair Holdings Plc, Singapore Airlines, Southwest Airlines Co., Thai Airways International PCL, United Airlines Holdings Inc., WestJet Airlines Ltd., Air Canada, Alaska Air Group, Allegiant Travel Company, Azul Linhas Aéreas Brasileiras S/A, Copa Holdings S.A., Emirates Group, Finnair Oyj, Hawaiian Holdings Inc., International Consolidated Airlines Group S.A., JetBlue Airways Corporation, Korean Air Lines Co. Ltd., Norwegian Air Shuttle ASA, Spirit Airlines Inc., Turkish Airlines Inc., Virgin Australia Holdings Limited, Volaris Aviation Holding Company, Wizz Air Holdings Plc, Xiamen Airlines Co. Ltd.
Which Regions Are Leading the Global Airlines Market in Revenue?
Asia-Pacific was the largest region in the airline market in 2024. Asia-Pacific is expected to be the fastest-growing region in the airlines market report during the forecast period. The regions covered in the airlines market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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