You can only download this statistic as a Premium user. "Net Profit of Commercial Airlines Worldwide from 2006 to 2022 (in Billion U.S. Now Ill take the same data and group the average gross profit margin by industry for each of the 20 years between 2001- 2020, shared in this table: Hopefully that data is clear enough to read if you click to zoom on the table. EDGE: A new global force in aerospace and defence, FlightGlobal Guide to Business Aviation Training and Safety 2021, Airline Business special: CEOs to watch in 2021, Willie Walshs famous list of a dozen potential acquisition targets, The decline and fall of Indias Jet Airways, United and Vistara codeshare on domestic Indian flights, US-China trade pact likely a boon for Boeing, Israels El Al returns to full-year profit, Air Baltic returns to full-year operating profit, Schiphol decision to cut flights faces legal challenge by IATA, Source: Cirium schedules data, change figures are year-on-year, SourceL Cirium schedules data, figures cover full-year seat capacity for all routes to, from and within each region, Source: Airline Business World Airline Rankings. The global fleet alone is expected to grow 42.5 percent to more than 39,000 aircraft by 2029. In, IATA. Jan 2017 - Jun 20192 years 6 months. In 2018 there were 17 budget brands appearing among the top 50 biggest airlines alone and four carriers Southwest Airlines, Ryanair, EasyJet and IndiGo featured among the top 10. The World Airline Rankings show that 17 of the 100 biggest carrier by passenger numbers in 2009 were low-cost operators. As the traditional revenue streams through ticket sales come under . But even in Asia profits are expected to drop next year by USD200 million compared to estimated 2011 levels and by USD5.7 billion from 2010 levels. Meanwhile, a new breed of state airlines, based mainly in the Persian Gulf, has brought more competition for long-haul passengers. While brands in the US market have been lost through the consolidation, in the rest of the world names and operations have largely remained intact even where acquisitions have taken place. Indeed only one of the 10 biggest airlines in 2009 made it into the black that year. statistic alerts) please log in with your personal account. Learn more about how Statista can support your business. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Opinions expressed by Forbes Contributors are their own. (October 5, 2021). Delta Air Lines posted net profits of $29.7bn across the first nine of the decade. Now, let's take a look at the U.S. air carriers that collected the most in baggage fee revenue overall in the past year. Net after-tax profits for airlines and, to a lesser extent, Aerospace Original Equipment Manufacturers (OEMs) currently track lower than a composite of all manufacturing companies. The Airline Business World Airline Rankings covering the 150 biggest airlines showed collective operating losses of $15 billion in 2008 and net losses in excess of $30 billion. Iata projects that airlines will collectively earn net income of $29.3bn on revenues of $727bn generating the strongest profit margins since the mid-1960s. Returns on capital are expected to . Oliver Wymans Grant Alport, Andy Buchanan, and Aaron Taylor contributed to the research and insights in the 2019 Airline Economic Analysis and in this article. To use individual functions (e.g., mark statistics as favourites, set The group brought in 2.4 billion ($2.5bn) in 2019, with premium travel and summer demand driving up numbers across its airline portfolio. Available: https://www.statista.com/statistics/225856/ebit-margin-of-commercial-airlines-worldwide/, EBIT margin of commercial airlines worldwide from 2010 to 2022, by region, Available to download in PNG, PDF, XLS format, Air traffic - worldwide revenue with passengers 2005-2022, Air cargo traffic - worldwide revenue 2004-2021, Profit and loss of airlines worldwide 2010-2022, Commercial airlines - global EBIT margin 2010-2022, Weekly flights change of global airlines due to COVID-19 as of January 2021, Revenue passenger kilometers of airlines - growth by region 2011-2022, Air cargo traffic - worldwide volume 2004-2022, Monthly freight load factor change in the aviation industry by region 2020-2021, Cargo yield of airlines worldwide 2005-2022, Air freight rates change since the beginning of COVID-19 outbreak 2019-2022, COVID-19's impact estimate on passenger revenue of airlines by region 2020, The leading airlines ranked by brand value 2022, Market value of selected airlines worldwide 2022, Leading airlines worldwide based on total number of passengers 2020, Passenger kilometers flown by airline worldwide 2020, Airlines worldwide - total freight tonne-kilometers 2020, Coronavirus: quarterly revenue loss of airports by region 2020-2022, World's busiest airports by number of passengers 2020, International air passenger traffic - leading airports worldwide 2020, Leading airports worldwide based on aircraft movements 2020, Worldwide air cargo traffic at airports by region 2020, Largest cargo airports worldwide by freight volume 2015-2020, Insurance claims in aviation industry worldwide by value of claims 2016-2020, Worldwide airlines - non-fuel expenses 2005-2022, Forecast of worldwide airline fuel expenses 2005-2022, Weekly seat capacity of domestic airlines in the Middle East by business model 2016, Passenger capacity between Europe and the United States 2007-2017, Southeast Asian domestic air traffic market by business model 2016, Main domestic airlines in Africa, ranked by weekly seat capacity 2016, Air carrier market share in the Middle East - international traffic 2016, Capacity share - international traffic Africa-Middle East 2016, Southeast Asian international air traffic by business model 2016, Air carrier market share in Africa - international traffic 2016, Leading airlines with the biggest fleet size 2021, U.S. air carriers - total scheduled aircraft departures 1991-2020, Find your information in our database containing over 20,000 reports. ", IATA, Net profit of commercial airlines worldwide from 2006 to 2022 (in billion U.S. dollars) Statista, https://www.statista.com/statistics/232513/net-profit-of-commercial-airlines-worldwide/ (last visited March 05, 2023), Net profit of commercial airlines worldwide from 2006 to 2022 (in billion U.S. dollars) [Graph], IATA, October 5, 2021. Telling us the gross margin difference between Target and Costco is less relevant because they are mostly playing two different ballgames (Costco selling low prices and items in bulk on a membership program versus Targets on-trend merchandise). Smaller companies will likely. A further sharp rise will follow for 2019 as the airline has further accelerated capacity to capitalise on the grounding of Jet Airways. The industry's net margins have risen from 1.4% in 2Q2019 to 2.24% in Q2 2020. If you are an admin, please authenticate by logging in again. Available: https://www.statista.com/statistics/232513/net-profit-of-commercial-airlines-worldwide/, Net profit of commercial airlines worldwide from 2006 to 2022, Market size of the global airline industry 2018-2021, Air traffic - worldwide revenue with passengers 2005-2022, Operating profit of airlines worldwide 2006-2022, Net profit of airlines worldwide 2006-2022, Passenger yield of airlines worldwide 2005-2022, Commercial airlines worldwide - fuel consumption 2005-2022, Worldwide air passenger traffic share by region 2019, Countries with the highest number of airline passengers globally 2020, Available seat kilometers of airlines worldwide - change by region 2011-2022, Monthly international revenue-passenger kilometers (RPK) change by region 2021, Available seat kilometers (ASK) in international air traffic by region 2021, Commercial airlines worldwide - passenger load factor 2005-2022, Monthly passenger load factor (PLF) on international flights by region 2020-2021, Leading airlines worldwide based on total number of passengers 2020, Passenger kilometers flown by airline worldwide 2020, Largest commercial airlines worldwide - ranked by sales 2021, Market value of selected airlines worldwide 2022, The leading airlines ranked by brand value 2022, Most punctual low cost carriers worldwide May 2021, Punctuality rate of airlines in North America May 2021, Punctuality of airlines in Europe May 2021, Air traffic - passenger volume forecast by region 2037, Air traffic - passenger growth rates forecast 2019-2040, Number of air passengers' growth forecast worldwide by region 2018-2050, Air passengers forecast worldwide by generation 2018-2050, International air passenger traffic by international carriers 2015-2021, Passenger traffic at worldwide airports by region December 2016, Distribution of airlines in Danish airspace 2018, Passengers transported by the leading foreign airlines in France 2017, Net profit per passenger transported by airlines worldwide 2005-2022, Forecast of worldwide airline fuel expenses 2005-2022, Worldwide airlines - non-fuel expenses 2005-2022, Air traffic growth - route & travel class 2014/2015, National and international commercial flights at Italy's leading airports 2020, Weekly seat capacity: North American domestic airlines by carrier 2016, U.S. airline ancillary: highest revenue as a share of total revenue Q3 2018, U.S. air carriers - total scheduled aircraft departures 1991-2020, Ancillary revenue generated by airlines: outside U.S. by source 2017, Leading European airlines ranked by seating capacity 2014, Air transport: turnover in France 2005-2018, Leading airlines for economy long-haul flights in Asia Pacific 2015, Total number of outbound flights from Luik-Bierset Airport in Belgium 2007-2020, Low Cost Carrier (LCC) market in the United States, Net profit of commercial airlines worldwide from 2006 to 2022 (in billion U.S. dollars), Find your information in our database containing over 20,000 reports. Dig deeper:Jumbo jets v swallows: comparing long-distance flights with migrating birds (December 2013)Why the world's biggest airport should be dug up and moved (December 2013)Asia's airports soar while America's leave passengers reaching for their sick-bags (April 2013), They were intended to treat diabetes. Domestic results for 23 scheduled airlines After-tax domestic net income $28.2 billion loss in 2020 Compared to $11.0 billion profit in 2019 Pre-tax domestic operating profit/loss $39.7 billion loss in 2020 Compared to $15.8 billion profit in 2019 2020 domestic operating revenue: $62.4 billion Share of total 2020 domestic operating revenue: With . Gross margin improved to 80.04 % in 4. Noting this difference, if we want to take an apples-to-apples comparison of gross profit margins between $BAH and $HURN, its probably better to use revenues net of billable/reimbursable expenses rather than treat billable expenses as an operating expense. Industry Mergers: Airline industries have already, and will continue to merge operations in order to keep costs lower and try to aid in profit margin increases. endobj While profits peaked at record high levels during the middle years of the decade, they have remained relatively high even as pressures increased. Airlines returned comfortably to the black in the 2010/11 financial year which was to start an unprecedented run of profitability. This was backed by a staggering $41 billion in revenue for the carrier, as corporate travel and strong global demand showed no signs of slowing. Average Operating (EBIT) Margin by Industry 20 Years of Data [S&P 500], What is a Good Net Profit Margin? As per IATA, the airline industry losses reduced to -$9.7 billion in 2022, a significant improvement from the losses of $137.7 billion (-36.0% net margin) in 2020 and $42.1 billion (-8.3% net margin) in 2021. Get full access to all features within our Business Solutions. Airline financial performance is expected to recover in all regions in2022. We would assume that Communication Services, which includes social media and video game companies, should have higher gross profit margins than a very capital intensive one like Energy. Profit margins increase with the market share of the largest airline serving the route. Domestic results for 25 scheduled airlines, International results for 19 scheduled U.S. airlines. Share of total 2021 international operating revenue: Fares: $15.3 billion, 67.6%, compared to 67.2% in 2020, Baggage fees: $998 million, 4.4%, compared to 3.4% in 2020, Reservation change fees: $88 million, 0.4%, compared to 1.5% in 2020, 2021 international operating expenses: $27.8 billion. Additionally, the impact of capacity growth on an already severely constrained infrastructure and overly congested airspace and airports must be addressed. Important policy suggestions follow. Since the pandemic, American has simplified operations and is hoping to decrease long-term costs, hopefully aiding its profit margins in the future as well. Management and/or analysts might have better reasoning to why this is the case rather than not, in which case the company reports Gross Margins above 50%; my point is that a good analysis of gross margin should require a judgment call especially if comparing to peers when some metrics have the possibility of not being 100% clear. The aviation industry is facing a predicted shortage of 55,000 pilots predicted by the end of the decade. Welcome to flightglobal.com. Please do not hesitate to contact me. Cirium schedules data shows for the past period between December 2009 and December 2019 compound annual growth rates for airline seat capacity of 5% and ASK capacity of 5.8%. Gross Margin grew to 89.78 % above Industry average Gross Margin. . Cleveland, Ohio, United States. Not unsurprisingly given the relatively benign economic backdrop of the decade, the last 10 years has seen global airline capacity on the rise every year. Globally, operating profit margins for leading players have typically been in the midteenseven exceeding 20% for some carriers. Obviously we want to see increasing operating margins over time. New: More Airline Industry historic profitability ratios >> Gross Margin Comment Despite sequential Revenue deterioration in 4 Q 2022 of -5.46 % Airline Industry managed to reduce Cost of Sales and increase Gross Profit by 22.76 %. But it's getting harder. In Europe the major groups have largely operated different brands within group structures in part due to the complexity around retaining bilateral traffic rights. Consolidation in the US sector was not restricted to the majors, as both Southwest Airlines and Virgin America got in on the act through the acquisition of AirTran Airways and Virgin America respectively. With a focus on developments across the airline industry as a whole, and within Europe in particular, Graham has also edited FlightGlobal daily papers from events such as the IATA AGM, moderates industry panels and co-presents the Airline Business podcast. Profit from the additional features of your individual account. Usually, if I were to see a company like this, I would just take Cost of Revenue and subtract that from Revenue to get Gross Profit. With an operating profit of 1.5 billion euros, the Lufthansa Group has achieved a much better result than expected. That more restrained capacity growth has contributed to the stronger profit performance of US carriers over that period. You can learn more about the cookies we use here. This years Airline Economic Analysis reinforces earlier findings that adding capacity at a pace faster than US economic growth has contributed to carriers eroding margins over the past several years. 3 0 obj endobj Annual car sales worldwide 2010-2022, with a forecast for 2023, Number of cars sold in the U.S. 1951-2021, Battery electric vehicles in use worldwide 2016-2021, Annual gas prices in the United States 1990-2021, Automotive industry worldwide - statistics & facts, Motorcycle industry in the United States - statistics & facts, Profit from additional features with an Employee Account. In, IATA. But the outlook is brightening. Airlines continued to receive life support from their governments, totaling $243 billion since the beginning of the pandemic. As a Premium user you get access to the detailed source references and background information about this statistic. But that roughly halved in 2017 and 2018 as the big Gulf carriers began moderating growth for a variety of internal and external reasons, and seat capacity on Middle East routes will be increased only fractionally in 2019 compared with the previous year. But as competition for these mail contracts became fierce, the airlines began competing destructively. The required seat factor to achieve breakeven is around 78% and average seat factor is around 80%. %PDF-1.7 Airlines had grown used to operating within an environment where oil prices were well over the $100 per barrel level. Industry Knowing the average profit margin by industry is essential when setting goals for your business. As well see later thats a pretty high gross margin, and it speaks to the wide profits currently available for the critical, high tech semiconductors which are such a large part of the goods economy today. Schiphols operator says this is a necessary intermediate step as it FlightGlobal is the global aviation communitys primary source of news, data, insight, knowledge and expertise. While its true that higher gross margins will tend to lead to higher valuations due to it likely flowing down to high return on capital metrics like ROIC, good investments require the right mix of low enough valuation and high compounding of capital to create great returns over the long term. The largest of these, Emirates, has more than trebled its revenues since 2009. One caveat: While margins have tightened since 2015, they are still higher than they were from 2010 to 2013, when they were six percent or lower and oil prices were consistently above $80. Full-service . To put it in context: Delta Air Lines, once again the most profitable airline group in the world in 2019 with a net profit of $4.8 billion, this year posted a net loss of $5.7 billion in the . The higher rates of seat and ASK capacity growth reflect a move to larger aircraft types or higher-density configurations, as well as longer sector lengths. But, just because a company has a higher average gross margin doesnt mean it is automatically a better investment than another. Airlines will have to figure out a way to cut fuel usage as they grow capacity, or face rising carbon offset payments under the Carbon Offsetting and Reduction Scheme for International Aviation. That year, GDP grew 2.5 percent versus capacity growth well above three percent. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. North America is expected to turn to profitability in 2022. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Persistently strong demand for air travel is pushing many carriers to add capacity, but the additional routes and service are making pricing more competitive and putting pressure on yields. More on Airline Industry Cash flow. Get full access to all features within our Business Solutions. Airlines are currently focused on reducing cash burn by 50% . 4Q 2021 domestic operating expenses: $34.3 billion, of which: Share of total 4Q 2021 domestic operating expenses: Fuel: $5.5 billion, 16.2%, compared to 8.2% in 4Q 2020, Labor: $11.8 billion, 34.5%, compared to 38.1% in 4Q 2020, Compared to $149 million profit in 3Q 2021. The increased capacity is also making it increasingly difficult for airlines to keep up their operational resilience and stick to published schedules. IATA figures for annual industry net profits - including the $25.9 billion it projects airlines will collectively make in 2019 - show an unbroken decade of profits in 2010. Fort Worth, Texas, United States. Filing requirement: By regulation, for the quarter ending Dec. 31, airlines that operate at least one aircraft that is designed/certified for more than 60 seats or the capacity to carry a payload of passengers and cargo weighing more than 18,000 pounds must report financial data to BTS by March 31. <>/Metadata 1884 0 R/ViewerPreferences 1885 0 R/PageLabels 1886 0 R>> This means that when they say, past performance is not a guarantee of future results, this is especially true for high revenue growth rates! ** Forecast, Global air traffic - scheduled passengers 2004-2022, Worldwide air traffic - number of fatalities 2006-2021, Global air traffic - annual growth of passenger demand 2006-2022, Fatal civil airliner accidents by country and region 1945-2022. Alright, lets take a deep (and important!) Based in New Delhi, India. Airline margins stabilizing in difficult business environment In last week's Airlines Financial Monitor we reported on an apparent stabilization in operating margins at the industry level . October 5, 2021. Which Are The World's Most Profitable Airlines? These are all great insights to keep in mind when looking at these profitability metrics. statistic alerts) please log in with your personal account. Warren Buffett has become one of the airline industry's biggest investors after calling the business a "death trap" for investors back in 2013. . Please do not hesitate to contact me. The phase one pact, aimed at settling two years of trade tensions between Israeli flag-carrier El Al has generated a full-year operating profit of $113 million, and ended the period with a net surplus of $109 million. Solutions Delivered The devised PESTLE analysis for airline helped the airline industry client to assess all the external marketing factors affecting their business decisions. 2009 - 20123 years. ASK capacity growth peaking at 7% in 2018. Christopher Mayer also offered in his great book 100 Baggers that Gross Margins are more likely to be indicative of a competitive advantage than Operating Margins, especially because Operating Margins can be more easily improved by cutting the operational fluff of a business. In this case, high gross profit margins were sustained more in some industries than others, but each found to have much higher (5-year) correlations than something like historical revenue growth. 2021 Annual Results for All 25 Scheduled Passenger Airlines. The Atlanta-based megacarrier recorded a net income of $4.76 billion in 2019 with a revenue of $47 billion, a huge margin of 10%. Profits were not a concern in the early years of commercial aviation. Copyright The Economist Newspaper Limited 2023. 1 Delta Air Lines The prize for the most profitable airline in the world goes to none other than Delta Air Lines. IATA. One year earlier, in the fourth quarter of 2020, the airlines reported an after-tax net loss of $7.0 billion and a pre-tax operating loss of $9.7 billion.
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