The global flights market size was valued at USD 195.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.5% from 2021 to 2028. The market growth is mainly attributed to the growth in tourism and leisure travel. With the globalization and improving tourism sector, more and more people are going on a vacation and spending on air travel. The growing disposable income, swelling middle-class population, and economic growth are some of the key factors supporting the growth of the market.
Increasing disposable income and economic growth in Asia Pacific and the Middle East countries are significantly driving the market. An increasing number of domestic and international airports also facilitates air travel preference, thus propelling the market growth. As the global market for flights grew steadily over the decade owing to the increasing tourism, simultaneously it also contributed significantly to the greenhouse gas emission, which is one of the serious restraints of the market growth.
According to the BBC article, the aviation industry is responsible for approximately 5% of global warming and 2.4% of global CO2 emissions. This emission coming from the aviation industry, includes aircraft itself, ground equipment, airport to and fro transportation, shuttle buses, etc. As a result of the Covid-19 pandemic and the emergence of the new related strains, the aviation and airline industry witnessed a drastic impact. International air travel was affected more severely during the period and continued to be uncertain in 2020. With the relaxed restrictions in domestic travel, the domestic flight industry is likely to perform better in the coming years.
The domestic segment held the largest revenue share of over 50.0% in 2020. According to the Airports Council International (ACI), in 2020, a total of 2,401 million passengers traveled in domestic flights, representing a decline when compared to the 2019 data, which was a total of 5,304 million passengers. As a result of the Covid-19 pandemic, domestic flights share grew from 2019 to 2020 because the majority of international travel was banned and/or restricted in 2020. Moreover, according to CAPA- Centre for Aviation, the domestic aviation industry grew at an alarming rate in China, contributing to the growth of the domestic segment.
The international segment is projected to register the fastest CAGR of 6.7% from 2021 to 2028. Due to the Covid-19 pandemic, international travel declined drastically due to the government ban on international travel. Many airlines were unable to resume flight schedules in most of 2020, which resulted in a significant drop in revenue share. Over the forecast period, it is expected that international travel, tourism, and business are likely to gain momentum, thus significantly contributing to the segment growth.
In 2020, the direct channel held the largest revenue share of over 50.0%. The direct channel includes airline mobile apps, airline websites, and other direct channels such as ticketing offices. As a result of technological development, airline websites remain the largest distributing channels offering an easy, hassle-free, and convenient reservation process. Direct booking from websites includes extra privileges such as mileages and various loyalty programs that attract consumers.
The online travel agency (OTA) segment is anticipated to register the highest CAGR of 5.8% from 2021 to 2028. This growth is attributed to technological developments, increasing penetration of the internet, and rising usage of internet-connected devices. OTAs account for one in five bookings according to the International Air Transport Association. OTAs are price-driven, offer the best price, and provide comparability with multiple airlines in one place.
Asia Pacific held the largest revenue share of over 30.0% in 2020 and is expected to register the fastest CAGR from 2021 to 2028. The market is anticipated to be driven by the rising per capita income, growing middle-class population, increasing affordability of air travel, rising disposable income, and high spending on air travel for tourism purposes. The growth of the regional market is significantly associated with the strong growth in China and an increase in the number of Chinese tourists. China’s outbound tourism has been continuously growing, with a total of around 6.2 trillion trips in 2019.
Europe held the second-largest revenue share in 2020. This is attributed to the higher tourism and leisure spending and business travel. According to Eurostat, in 2019, the total number of passengers carried in the European Union amounted to 1,034 million. Higher disposable income, developed aviation industry, and higher network connectivity are significantly contributing to the regional market growth.
The market has been characterized by the presence of large- and medium-sized players. Mergers and acquisitions are among the strategic decisions taken by the companies, thus contributing to the market growth. For instance, ManaAir LLC, owned by United Airlines, announced the completion of the purchase of ExpressJet Airlines, previously owned by SkyWest, Inc. in 2019. Companies are also focusing on the development on the technology front. For instance, AirAsia launched Super App on November 18th, 2021, which includes the world’s first facial recognition technology and provides a fully digital and contactless journey. Some prominent players in the global flights market include:
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Report Attribute |
Details |
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Market size value in 2021 |
USD 152.8 billion |
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Revenue forecast in 2028 |
USD 208.1 billion |
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Growth Rate |
CAGR of 4.5% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Type, distribution channel, region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Canada,; U.K.; Germany; France; China; India; Japan; Brazil; Argentina; Saudi Arabia; South Africa |
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Key companies profiled |
American Airlines Group Inc.; China Southern Airlines Company Limited; Delta Air Lines, Inc.; United Airlines Holdings Inc.; China Eastern Airlines Corporation Limited; Qatar Airways Company Q.C.S.C.; The Emirates Group; Deutsche Lufthansa AG; EasyJet plc; Air Canada |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global flights market report on the basis of type, distribution channel, and region:
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