Table of Contents
Scope and Themes
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- What you need to know
- Definition
- U.S. airline market
- Major airlines market
- Discount airlines market
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- A complex market
- Operating revenues hide the turmoil…
- …As large losses and wave of bankruptcies shake the industry
- High ad spend—business as usual
- The Consumer
- Consolidation beckons—competition declines as carriers cut capacity to raise prices
Market Drivers
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- Growth in U.S. economy continues
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- Figure 1: U.S. gross domestic product, 2000-06
- Growth in high income brackets creates industry growth…..
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- Figure 2: Number of households per income group, 1999 and 2005
- … but median household income falls
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- Figure 3: Median household income, 1994-2004
- Annual crude oil and jet fuel prices
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- Figure 4: Crude oil prices versus average jet fuel paid, 2001-06
- Passenger prices
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- Figure 5: Annual passenger real prices (in 1978* cents per passenger mile) for the domestic and international markets, 2001-05
- Airline bankruptcies introduce uncertainty
- Security concerns make flying harder
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- Figure 6: Attitudes to air travel safety, October 2006
- Lack of vacation time limits personal travel
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- Figure 7: Employees with access to paid vacation and paid holidays, 1999-2005
- Business travel boosts airline industry
Market Size and Trends
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- Figure 8: Total U.S. operating revenues of U.S. passenger and cargo airlines, at current and constant prices, 2000-06
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- Figure 9: Net profit/loss and profit/loss margins of U.S. passenger and cargo airlines, at current and constant prices, 2000-06
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- Figure 10: Total Worldwide operating revenues of all passenger and cargo airlines, at current and constant prices, 2000-06
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- Figure 11: Total U.S. operating revenues in relation to Worldwide operating revenues of all passenger and cargo airlines, at current and constant prices, 2000-06
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Supply Structure
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- Figure 12: Operating revenue of U.S. airlines, 2003 and 2005
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- Figure 13: Total gains/losses by leading U.S. airlines, 2003 and 2005
- Method of booking
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- Figure 14: Who usually makes flight reservations and how, October 2006
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- Figure 15: How often do you choose/change date of personal air travel to get cheap fares, October 2006
- Companies and brands
- American Airlines
- UAL Corporation/United Airlines
- Delta Airlines
- Northwest Airlines
- Continental Airlines
- US Airways Group
- Southwest Airlines
- JetBlue
- Alaska Air Group
- AirTran Airways
- Frontier Airlines
- ATA
- Spirit Airlines
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Advertising and Promotion
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- Overview
- Delta Airlines
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- Figure 16: Delta TV spot, 2006
- American Airlines
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- Figure 17: American Airlines TV spot, 2006
- United Airlines
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- Figure 18: United Airlines TV spot, 2006
- Southwest Airlines
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- Figure 19: Southwest Airlines TV spot, 2006
- Continental Airlines
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- Figure 20: Continental Airlines TV spot, 2006
- US Airways
- Northwest Airlines
- JetBlue
- Alaska Airlines
- AirTran Airways
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- Figure 21: AirTran Airways TV spot, 2006
- Frontier
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- Figure 22: Frontier TV spot, 2006
- ATA
- Spirit Airlines
The Consumer
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- Introduction
- Summary
- Key findings
- Domestic air travel
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- Figure 23: Number of domestic plane trips in the last 12 months, May 2005-June 2006
- Reasons for last trip—domestic air travel
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- Figure 24: Reason for last domestic plane trip in the last 12 months, May 2005-June 2006
- Frequency of domestic vacation/personal travel
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- Figure 25: Number of domestic plane trips in the last 12 months, for vacation/personal travel,
- Frequency of domestic business travel
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- Figure 26: Number of domestic plane trips in the last 12 months, for business travel, May 2005-June 2006
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- Figure 27: Number of domestic plane trips in the last 12 months, for business travel by age,
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- Figure 28: Number of domestic plane trips in the last 12 months, for business travel, by household income, May 2005-June 2006
- International air travel
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- Figure 29: Number of international plane trips in the last three years, May 2005-June 2006
- Frequency of international personal travel
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- Figure 30: Number of international plane trips in the last three years, for personal travel, May 2005-June 2006
- Frequency of international business travel
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- Figure 31: Number of international plane trips in the last three years, for business travel, May 2005-June 2006
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- Figure 32: Number of international plane trips in the last three years, for business travel, by age, May 2005-June 2006
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- Figure 33: Number of international plane trips in the last three years, for business travel, by household income, May 2005-June 2006
- Reason for last international trip
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- Figure 34: Reason for last international trip in the last three years, May 2005-June 2006
- Frequent flyer programs
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- Figure 35: Current membership of any frequent flyer program, by age, May 2005-June 2006
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- Figure 36: Current membership of frequent flyer programs, by race/ethnicity, May 2005-June 2006
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- Figure 37: Current membership of frequent flyer programs, by region, May 2005-June 2006
- Proprietary research
- Number of round trip flights taken
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- Figure 38: Number of round trip flights taken in the last year, by age, October 2006
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- Figure 39: Number of round trip flights taken in the last year, by household income, October 2006
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- Figure 40: Number of round trip flights taken in the last year, by race/Hispanic origin, October 2006
- Frequency of business flights
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- Figure 41: Number of business-related flights taken in the last year, by gender, October 2006
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- Figure 42: Number of business-related flights taken in the last year, by age, October 2006
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- Figure 43: Number of business-related flights taken in the last year, by household income, October 2006
- Method of booking business flights
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- Figure 44: Who usually makes business flight reservation and how, by race/Hispanic origin, October 2006
- Choice of airline—business flights
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- Figure 45: Airlines flown with in the last year for business, by race/Hispanic origin, October 2006
- Method of booking personal flights
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- Figure 46: Who usually makes personal flight reservations and how, by age, October 2006
- Choice of airline—personal flights
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- Figure 47: Airlines flown with in the last year for personal travel, by age, October 2006
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- Figure 48: Airlines flown with in the last year for personal travel, by household income, October 2006
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- Figure 49: Airlines flown with in the last year for personal travel, by race/Hispanic origin, October 2006
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- Figure 50: Airlines flown with in the last year for personal travel, by region, October 2006
- Combining business and personal travel
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- Figure 51: How often business and personal travel were combined, by household income, October 2006
- Attitudes to flying and price
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- Figure 52: Ever taken a slower form of transport to avoid flying, by age, October 2006
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- Figure 53: Ever taken a slower form of transport to avoid flying, by household size, October 2006
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- Figure 54: How often do you choose/change date of personal air travel to get cheap fares, by age, October 2006
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- Figure 55: How often do you choose/change date of personal air travel to get cheap fares, by household size, October 2006
- Attitudes to air travel
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- Figure 56: Attitudes to air travel, October 2006
Future and Forecast
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- Future trends
- Consolidation beckons….again
- Average ticket prices rise slowly
- Amenity creep as airlines upgrade
- Capacity shifts from domestic to international routes
- Market forecast
- U.S. passenger and cargo airlines
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- Figure 57: Forecast of total U.S. operating revenue of passenger and cargo airlines, at current and constant prices, 2006-11
- Forecast factors
Appendix: Trade Associations
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