Clear skies: Better macroeconomic conditions will lead to revenue growth for operators

The Scheduled Air Transportation industry in Canada has taken flight over the past five years as rising levels of disposable income have enabled more consumers to purchase airline tickets, while the relatively weak Canadian dollar has encouraged substantial inbound travel from foreign consumers visiting Canada. The industry has become slowly liberalized over the past few decades as the Canadian government has eased aviation regulation, enabling the emergence of low-cost carriers and altering the industry's competitive environment. The industry is still dominated by large established network carriers. However, heavily discounted fares have become a feature of the more.

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

Industry Threats & Opportunities

  • The industry has become slowly liberalized over the past few decades as the Canadian government has eased aviation regulation
  • The declining world price of crude oil significantly reduced industry purchase costs
  • Rising per capita disposable income will aid leisure travel over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Scheduled Air Transportation industry in Canada has a high degree of concentration and the top four industry players are estimated to hold a combined market share of more than 85.0% in 2018. Air Canada and WestJet dominate the domestic segment of the industry, controlling over 90.0% of overall domestic scheduled capacity based on available seat miles, according to Official Airline Guide data. The Canadian domestic market is characterized by a large geographic territory with a limited number of high-density markets accounting for the majority of passenger traffic and revenue. This leads to concentration of routes in Canada around four major hubs: Toronto, Montreal, Vancouver and Calgary. Air...purchase to read more.

    Additional Insights for the Scheduled Air Transportation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Scheduled Air Transportation Industry are

  • Optimum capacity utilization
  • Effective cost controls
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Corporate profit in the Scheduled Air Transportation industry impact industry performance..

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    What's in this report

    What is the Scheduled Air Transportation Industry?

    This industry provides 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.

    Industry Products
  • Scheduled domestic travel
  • Scheduled US-transborder travel
  • Scheduled non-US international travel
  • Scheduled cargo transportation
  • Industry Activities
  • Scheduled domestic air passenger transportation
  • Scheduled transborder air passenger transportation
  • Scheduled international air passenger transportation
  • Scheduled helicopter passenger transportation
  • Scheduled air freight transportation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Corporate profit
  • Inbound international travel
  • International trips by Canadian residents
  • World price of crude oil

  • Current Performance
  • International travel
  • Oil prices
  • Competition and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue prospects
  • Profit margins stagnate
  • Competition rising on new routes
  • Table: Scheduled Air Transportation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Scheduled Air Transportation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Freight Forwarding Brokerages & Agencies in Canada
  • Public Administration in Canada
  • Couriers & Local Delivery Services in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Aircraft Maintenance, Repair & Overhaul in Canada
  • Aircraft, Engine & Parts Manufacturing in Canada
  • Airport Operations in Canada
  • Gasoline & Petroleum Wholesaling in Canada

  • Products & Services
  • Scheduled domestic travel
  • Scheduled non-US international travel
  • Scheduled US-transborder travel
  • Other
  • Scheduled cargo transportation
  • Chart: Scheduled Air Transportation Industry Products and Services Segmentation

  • Demand Determinants
  • Leisure travel
  • Business travel
  • Cargo transportation
  • Sudden impact

  • Major Markets
  • Passengers in highest income quintile
  • Passengers in fourth income quintile
  • Passengers in third income quintile
  • Passengers in second income quintile
  • Passengers in lowest income quintile
  • Freight and mail markets
  • Chart: Major Market Segmentation for the Scheduled Air Transportation 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 Scheduled Air Transportation

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Scheduled Air Transportation Industry

  • Industry Globalization
    Air Canada, WestJet Airlines Ltd.,
  • Table: Air Canada - financial performance
  • Table: WestJet Airlines Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Scheduled Air Transportation 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 Scheduled Air Transportation Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World price of crude oil (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Goods or produce transported, generally for commercial gain.
  • Hub
  • An airport that an airline uses as a transfer point to get passengers to their intended destination.
  • Revenue Passenger Miles
  • A measure calculated using the total number of revenue-paying passengers aboard a vehicle by the distance travelled measured in miles.
  • Revenue Tonne Miles
  • A measure of freight traffic onboard an aircraft, calculated using the total weight of the cargo aboard the vehicle by the distance travelled measured in miles.
  • What Our Customers Say

    Why buy this report?

    The Scheduled Air Transportation market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Scheduled Air Transportation:
    • 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 Scheduled Air Transportation 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 Scheduled Air Transportation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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