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          1. Airlines Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 7/20/2020
            SIC Codes: 4512
            NAICS Codes: 4811
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Airlines Industry Profile

            Companies in this industry provide scheduled domestic and international passenger transportation, as well as mail and freight transportation. Major US companies include American Airlines, Delta, FedEx, Southwest, and United; leading companies based outside the US include Air France-KLM, China Southern Air, Lufthansa Group, Emirates Group, and International Airlines Group.

            Worldwide, the airline industry generates more than $800 billion in revenue annually. The number of air travelers is expected to exceed 4.5 billion in 2019, up from about 3 billion in 2012, according to the International Air Transport Association. Top regions for passenger growth include the emerging economies of Africa, Asia/Pacific, Latin America, and the Middle East.

            The US airline industry includes about 2,200 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $190 billion.

            COMPETITIVE LANDSCAPE

            Airline demand depends highly on the health of the economy, which affects spending on business and leisure air travel. Because many costs are fixed, the profitability of individual companies is determined by efficient operations and on favorable fuel and labor costs. Large companies enjoy economies of scale in purchasing and the ability to provide more extensive services. Small airlines can compete by serving local or regional routes.

            The high capital requirements of the airline industry severely limit the number of participants. The US industry is highly concentrated: the four largest companies account for more than 60% of industry revenue. Major network carriers are feeling ...

             
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