Top 10 Global Airlines: Industry issues and strategic responses

Airlines aim to benefit from rising disposable incomes and a steady increase in passenger volumes, while contending with volatile fuel prices, congestion in hub airports, and low switching costs for passengers. This report outlines the strategic responses of the top 10 global airlines, and how successful these have been.

Scope

  • This report analyses the key external factors currently affecting the top 10 global airlines by passenger volume, and their strategic responses.
  • The financial performance of the top 10 airlines is summarized and they are compared to each other.

Reasons to buy

How easy is it for a major airline to be profitable, and how intense is price competition in the industry?

How are airlines coping with high fuel prices and the need to reduce their environmental impact?

Why are airline alliances so popular, and what benefits do they confer on their members?

Which of the top 10 global airlines has posted double-digit net margins for the 2010-2014 period, and how did it achieve this?

Companies mentioned

None

None

Table of Contents

OVERVIEW

Catalyst

Summary

AIRLINE INDUSTRY STRUCTURE

Definition

Airlines can adopt several different business models

Legacy

Budget

Charter

Regional

Revenue streams

Passenger ticket sales

Surcharges

Cargo ...

OVERVIEW

Catalyst

Summary

AIRLINE INDUSTRY STRUCTURE

Definition

Airlines can adopt several different business models

Legacy

Budget

Charter

Regional

Revenue streams

Passenger ticket sales

Surcharges

Cargo

B2B services

Major operating costs

Fuel

Employees

Maintenance

Aircraft

OPPORTUNITIES AND THREATS FOR AIRLINES

Opportunities

Rising personal incomes in emerging economies

Alliances offer network size economies

Freight volumes are increasing

Threats

Fuel prices are high and volatile

Price competition can be intense

Passenger switching costs are low

Hub airports are suffering from congestion

Air travel has a significant carbon footprint

Profitability is improving but still low

Middle Eastern carriers are challenging airlines in other regions

HOW ARE AIRLINES RESPONDING?

Delta Airlines

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

Southwest Airlines

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

China Southern Airline

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

United Airlines

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

American Airlines

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

Ryanair

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

China Eastern Airlines

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

easyJet

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

Lufthansa

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

Air China

Emerging economies

Alliances

Freight

Fuel prices

Price competition

Passenger switching costs

Hub airport congestion

Air travel carbon footprint

Profitability

Middle Eastern carriers

COMPANY RANKINGS

[Missing title]

Diversity of revenues streams

Cost structure

Profitability

CONCLUSIONS

The major airlines are responding well to tough conditions

APPENDIX

Sources

Further Reading

Ask the analyst

About MarketLine

Disclaimer

List of Tables

NA

NA

List of Figures

NA

NA

    Pricing

Discounts available for multiple report purchases.

reportstore@marketline.com
+44 (0) 161 359 5817

Saved reports