Fight or flight: Price competition from low-cost airlines has limited industry growth

Airlines from different countries operate in the International Airlines industry. While many airlines, such as Emirates and Singapore Airlines, have a significant market presence in Australia, few foreign airlines have local incorporated subsidiaries. As a result, any airline that flies passengers or freight to or from Australia is included in the industry. The number of people travelling to and from Australia has increased over the past five years, mostly due to increased tourism from nearby Asian countries. As a result, the International Airlines industry has grown strongly over most of the past five years. Industry revenue is expected to grow at an annualised 3.3% over the five years through 2017-18, to reach $23.1 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Australia’s growing popularity as a tourism destination has benefitted international airlines
  • Growing inbound and outbound air traffic has increased the overall capacity for airfreight
  • Competition from low-cost airlines will continue to exert downward pressure on airfares
  • Industry Report - Industry Key Buyers Chapter

    The International Airlines industry is moderately concentrated, with the top four players, Qantas, Emirates, Singapore Airlines and Virgin Australia, expected to account for over half of total industry revenue in 2017-18. Qantas is the largest player, due to its established history in Australia, its fleet size and its extensive network of international destinations. Emirates and Singapore Airlines are the two largest foreign entities operating in the industry, benefiting from their strong global brand presence. Virgin Australia is Qantas' main competitor both domestically and internationally. The industry's other players are mostly international airlines that run a few scheduled services to a range of international destinations. The...purchase to read more.

    Additional Insights for the International Airlines Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the International Airlines Industry are

  • Ability to manage risk effectively
  • Optimum capacity utilisation
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as International travel to Australia and International travel by Australians in the International Airlines industry impact industry performance..

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    What's in this report

    What is the International Airlines Industry?

    The industry primarily transports passengers by air over scheduled routes that either end or originate internationally. Airlines that provide scheduled international air freight transport are also included in the industry.

    Industry Products
  • Full-fare passenger transport
  • Low-fare passenger transport
  • Freight transport
  • Industry Activities
  • International air passenger transport
  • International air freight transport
  • Air transport terminal operation (except airports)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International travel to Australia
  • International travel by Australians
  • US dollars per Australian dollar
  • World price of crude oil
  • Consumer sentiment index

  • Current Performance
  • Passenger demand and freight
  • Cost fluctuations
  • Route competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand for tourism
  • Competition and costs
  • Table: International Airlines Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - International Airlines Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Tourism

  • Key Selling Industries
  • Aircraft Manufacturing and Repair Services
  • Catering Services
  • Non-Scheduled Air Transport
  • Petroleum Product Wholesaling

  • Products & Services
  • Full-fare passenger transport
  • Low-fare passenger transport
  • Freight transport
  • Other
  • Chart: International Airlines Industry Products and Services Segmentation

  • Demand Determinants
  • Leisure and business
  • Freight

  • Major Markets
  • Australian residents
  • International travellers
  • Businesses
  • Chart: Major Market Segmentation for the International Airlines Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs International Airlines

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the International Airlines Industry

  • Industry Globalization
    Qantas Airways Limited, Singapore Airlines Ltd, Emirates Group,
  • Table: Qantas Airways Limited - financial performance
  • Table: Singapore Airlines Ltd - financial performance
  • Table: Emirates Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the International Airlines Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the International Airlines Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Apron Parking
  • Areas for aircraft parking and maintenance.
  • Civil Aviation Safety Authority
  • The independent statutory authority that manages this industry.
  • Codesharing
  • An agreement between two or more carriers to share the same flight while selling tickets under different flight codes.
  • Fuel Hedging
  • The practice of locking in fuel prices at a certain market rate to remove exposure to fluctuations in the price of oil.
  • Iata
  • Stands for the International Air Transport Association, an organisation of international airlines.
  • Passenger Load Factor
  • The total number of tickets sold divided by the total number of seats available, which measures the capacity utilisation of an airline within a given time frame.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s International Airlines market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on International Airlines:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The International Airlines market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on International Airlines, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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