Domestic Airlines in the US - Industry Market Research Report

Checked Bag: Increasing Corporate Profit and Consumer Confidence Will Increase Passenger Air Travel

The Domestic Airlines industry primarily engages in the scheduled transportation of passengers and cargo. The 2020 pandemic created a significant challenge for airlines, as travel restrictions created to prevent the spread of the virus lowered travel activity. The recovery was quick once mass vaccination efforts allowed travel regulations to be lifted. This resulted in significant revenue growth, although it remains lower than pre-pandemic levels. An appreciating US dollar drives demand for international travel as it becomes more affordable, limiting domestic tourism. The pandemic and current travel activity trends resulted in domestic airlines contracting at an estimated CAGR of 6.0% to $127.5 billion over the five years to 2023, including a decrease of 1.7% in 2023 alone.

The industry provides domestic air transportation for passengers and cargo over regular routes and on regular schedules. Network carriers operate a significant portion of their flights using at least one hub where connections are made for flights on a spoke system. Regional carriers provide service from small cities, mostly using smaller aircraft and jets to support the network carriers’ hub and spoke systems. Airlines that transport mail are included in this industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.