AI Redefining the Commercial Airlines Market, USD 370.2 Billion Growth from 2024-2028 Driven by Increased Air Passenger Traffic - Technavio Report

NEW YORK, Sept. 17, 2024 /PRNewswire/ -- Report with market evolution powered by AI- The global commercial airlines market size is estimated to grow by USD 370.2 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  8.09%  during the forecast period. Increase in air passenger traffic is driving market growth, with a trend towards rising preference for smart airports. However, increasing operating expenses  poses a challenge. Key market players include Air China Ltd., Air France KLM SA, Air Transport Services Group Inc., American Airlines Group Inc., Ana Holdings Inc., China Eastern Airlines Co. Ltd., China Eastern Airlines Corp. Ltd., Copa Holdings SA, Delta Air Lines Inc., Deutsche Lufthansa AG, easyJet plc, Green Africa Airways Ltd., Hahn Air Lines GmbH, InterGlobe Aviation Ltd., International Consolidated Airlines Group SA, Japan Airlines Co. Ltd., John Swire and Sons Ltd., Qantas Airways Ltd., Southwest Airlines Co., and United Airlines Inc..

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Market Driver

The aviation industry has experienced significant growth since the turn of the millennium, leading to the need for more efficient and profitable airport operations. IATA and Airports Council International (ACI) have proposed the concept of smart airports to address this challenge. These airports utilize a single digital grid for real-time information sharing among airport operators, airlines, and passengers. The operational efficiency of smart airports is enhanced through integrated passenger services and security capabilities. Regulatory bodies, including IATA, FAA, EASA, CASA, and the EU, encourage their development to minimize risks and improve passenger experience. Since 2000, airline and airport businesses have adopted new approaches, such as shared, agile infrastructure, to manage complex operations. This infrastructure reduces turnaround times for airlines, ensuring a better passenger experience and advanced operational efficiency for aviation ecosystem partners. The emergence of smart and agile airports is expected to positively impact the global commercial airlines market. 

The commercial airline market is experiencing significant trends that impact air travel demand and airline profitability. Manual aircraft are giving way to modern, fuel-efficient planes like narrow-body aircraft. Geopolitical stability and environmental regulations drive the need for sustainable aviation and urban air mobility. Connectivity and technology integration are key, with fuel-efficient engines and advanced materials reducing operating costs. Legal frameworks and commercial drone use require special waivers and parts. Machine learning and artificial intelligence enhance aircraft safety and product offerings. The commercial aviation industry continues to grow, with the UNWTO reporting increased air passenger traffic from cross-border travelers in emerging countries. Fleet management remains crucial for airlines, as they navigate the challenges of an ever-evolving market. 

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• Commercial airlines face escalating operating expenses (OPEX) due to rising fuel prices and increasing labor costs. Fuel prices have grown as a result of geopolitical events, such as US sanctions on Iranian oil exports and OPEC production cuts. Labor costs, on the other hand, are fixed costs in the short term for airlines but fuel costs are subject to volatility based on crude oil prices. Unit labor costs have significantly risen after years of stability. Competition in the industry has intensified with the proliferation of low-cost carriers (LCCs) and consolidation deals. Online travel agencies (OTAs) and intermediaries invest in digital solutions, adding to airlines' costs to remain competitive. These factors are eroding profit margins, forcing airlines to adopt strategies like competitive pricing, which may not be sustainable in the long term. The combination of rising fuel and labor costs, as well as heightened competition, pose a threat to revenue growth in the commercial airline market.
• The airline industry faces several challenges in the current business environment. Economic conditions significantly impact aircraft orders with uncertainty affecting both the business and leisure sectors. Domestic passenger traffic growth is uneven, influenced by per capita income and infrastructure development. Fleet expansion plans require careful consideration due to the high cost of purchasing new commercial aircraft, such as wide-body and narrow-body models from manufacturers like Boeing and Airbus. Mitsubishi Heavy Industries, SpaceJet, and ATR are making strides with regional aircraft like the Turbofan and Turboprop, offering cost-effective solutions for smaller markets. Delta Airlines and other major carriers invest in new aircraft technologies and engine programs to improve fuel efficiency and reduce emissions. Wizz Air, Frontier, Volaris, JetSMART, and others focus on expanding their networks with narrow-body aircraft. Cargo transportation remains a crucial aspect of the air transport industry, with freighters and commercial helicopters playing essential roles. Companies like ROSTEC and ATR are exploring new aircraft designs, including civilian aircraft, commercial gliders, and even drones, to cater to diverse market needs. Aircraft turbines, aircraft engines, and rocket engines continue to evolve, driving innovation in the industry.

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This commercial airlines market report extensively covers market segmentation by  

1. Revenue Stream
• 1.1 Passenger
• 1.2 Cargo
2. Type 
• 2.1 International
• 2.2 Domestic
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Passenger-  The commercial airline market is a significant sector in the global transportation industry. Airlines offer scheduled air travel for passengers and cargo. Key players include American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines. These companies operate fleets of aircraft, providing regular services on both domestic and international routes. Airline revenue comes primarily from ticket sales, with ancillary income from services like in-flight meals and baggage fees. Competition is fierce, with airlines focusing on offering competitive pricing, frequent flyer programs, and improved customer service to attract passengers. The market is influenced by factors like fuel prices, economic conditions, and government regulations. Airlines continually seek ways to optimize operations and reduce costs, such as implementing fuel-efficient aircraft and streamlining processes.

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The commercial airlines market encompasses the design, manufacturing, and operation of passenger aircraft. These aircraft come in various sub-types and body types, with narrowbody aircraft being a popular choice due to their fuel-efficiency and modern design. The commercial aviation industry continues to evolve, with new aircraft technologies and engine programs driving innovation. Narrowbody aircraft, such as those in the single-aisle category, offer diverse product offerings and are widely used for short-haul flights. Fuel efficiency is a key consideration, with manufacturers focusing on reducing weight and improving aerodynamics. Modern aircraft feature advanced fuselages, wings, cockpits, engines, tail assemblies, and landing gear, all designed to optimize performance and reduce environmental impact. Cargo transportation is also an essential part of the commercial aviation industry, with specialized aircraft and technologies used for this purpose. Commercial helicopters and gliders serve specific niches within the industry, offering unique advantages for certain routes and applications. Companies involved in this sector include Mitsubishi Heavy Industries with their SpaceJet, ROSTEC with their ATR, and various engine programs. Turbofan engines are commonly used in narrowbody aircraft, while propeller-driven aircraft continue to play a role in certain markets.

The commercial airlines market encompasses the design, manufacturing, and operation of passenger aircraft and cargo transportation solutions. Narrowbody Aircraft, a sub-aircraft type, is a popular choice due to its fuel-efficiency and modern aircraft technology. The commercial aviation industry continues to grow, driven by the UNWTO's promotion of cross-border travelers and increasing GDP in emerging countries. Airlines are focusing on fleet management and expanding their fleets with new aircraft orders, influenced by economic conditions and domestic passenger traffic. The business and leisure sectors are major contributors to air passenger traffic. New aircraft technologies, engine programs, and advanced materials are shaping the industry, with companies like Mitsubishi Heavy Industries and SpaceJet leading the way in narrow-body aircraft production. The air transport industry and airline industry are integrating technology such as fuel-efficient engines, turbofans, and turboprops, as well as manual aircraft, commercial helicopters, commercial gliders, drones, and aircraft turbines. The industry faces challenges including geopolitical stability, environmental regulations, and sustainable aviation initiatives. Urban air mobility and connectivity are also key areas of focus, with technology integration and legal frameworks playing crucial roles. Commercial drone use is gaining traction, with special waivers and parts availability being key considerations. Machine learning and artificial intelligence are transforming fleet management and aircraft safety.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Revenue Stream
• Passenger
• Cargo
• Type
• International
• Domestic
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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