The UK airlines market is expected to recover to pre-pandemic levels in 2024, with international passenger volumes driving this recovery. For many consumers, price sensitivity persists, and cost is the most significant barrier to flying.
UK Airline Market – Current Landscape
The total number of passengers uplifted at UK airports is set to return to pre-pandemic levels for the first time in 2024, with improved economic conditions and increased capacity being key drivers of growth that year. International passenger volumes are expected to reach a new record high. Domestic volumes are still recovering, partly due to the greater reliance on business travel, which is recovering more slowly.
Environmental measures such as sustainable aviation fuel targets and the revised EU Emissions Trading System are putting pressure on airlines’ spending. Lufthansa Group has already introduced a surcharge to cover part of the additional expenses. With cost being the leading barrier to flying, airlines will be challenged to limit the impact of their transition to net-zero on ticket prices.
The desire for inflight Wi-Fi access is high, particularly among business travellers, younger passengers and families. About three in 10 passengers are willing to pay for inflight messaging, browsing or streaming. Offering free Wi-Fi in premium seats could encourage upgrades, while incorporating Wi-Fi services into loyalty programs can enhance their appeal and boost customer engagement and retention.
UK Airlines Market Statistics
- UK airline market share:Â easyJet UK Ltd remains the market leader, with a 20% increase in passengers in 2023 from the year before.
- UK airline market size: The volume of the total number of passengers uplifted at UK airports is expected to reach 277.4 million in 2024.
- UK consumer air travel habits:Â Over half the UK adult population travelled by air in the past year to August 2024.
UK Airlines Market Report – What’s Inside?
Key Topics Analysed in the Report
- How the UK airlines market is expected to perform over the next five years, including a breakdown of domestic and international air travel
- The factors that most influence the choice of airline and how this differs between economy and non-economy passengers
- Passengers’ interest in onboard Wi-Fi, their willingness to pay for the amenity and how much inflight Wi-Fi influences their decision when choosing an airline
- Barriers to flying, including the cost of flights and environmental concerns
Report Scope
This report examines the UK airlines market. Travel for all purposes (eg holidays, visits to friends or relatives, business trips and flights for other purposes) is included in the scope of this report.
Meet the Expert Behind the Analysis
This report is written by Marloes De Vries, Travel Analyst at Mintel. Marloes is a research analyst at Mintel, focusing on the travel sector. She previously worked as a researcher for the British and Dutch tourist boards, after having been a project leader in the field of tourism and leisure at a leading market research agency in Amsterdam. Marloes holds a degree in Tourism Management.
Providing onboard Wi-Fi can incentivise passengers to upgrade, while incorporating this feature into loyalty programs can increase their attractiveness.
Marloes De Vries
Travel Analyst
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Executive Summary
- Opportunities for the airlines market
- Three opportunities for the airlines market
- Market dynamics and outlook
- Market size & forecast
- Market predictions
- International passenger numbers are expected to hit new records
- Domestic volumes are expected to take several years to recover
- easyJet and British Airways remained the UK’s leading airlines in 2023
- What consumers want and why
- Over half of the UK adult population flew in the past year
- Demand to fly remains strong
- Graph 1: flights taken in the past 12 months vs intention to take flights in the next 12 months, by purpose, 2024
- Almost two thirds of passengers consider low price an important factor when choosing an airline
- Graph 2: factors that most influence choice of airline, 2024
- Low prices and direct flights are important reasons for travellers to switch airlines
- Graph 3: most important factors when choosing an airline, by level of loyalty, 2024
- More passengers prefer bundled fares
- Graph 4: ticket price display preference, 2024
- Interest in internet access while flying is strong
- Graph 5: willingness to pay for onboard Wi-Fi services, 2024
- Innovation and marketing
- Innovations in personalisation to enhance the flying experience
- Airlines are implementing generative AI across their business
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Market Dynamics
- Market size
- UK airlines market expected to recover to pre-pandemic levels in 2024
- Graph 6: volume of passenger numbers uplifted from UK airports, 2016-24
- International volume expected to exceed pre-pandemic levels in 2024
- Graph 7: volume of domestic and international passenger numbers uplifted from UK airports, 2016-24
- Market forecast
- International passenger numbers are expected to hit new records
- Domestic volumes are expected to take several years to recover
- UK airlines market expected to grow year-on-year
- Market segmentation
- Nearly nine in 10 overseas trips taken by UK residents in 2023 were made by air
- Holidays and VFR, the largest segments of the outbound air travel market, nearly recovered to pre-pandemic levels
- Spain remained by far the most visited overseas destination by air in 2023
- Graph 8: top 10 overseas destinations by volume of trips taken by air by UK residents, 2019, 2022 and 2023
- Performance varies between destinations
- Market share
- Capacity of fast-growing Wizz Air under pressure
- Ryanair aims to gain market share with lower pricing
- British Airways capacity is still recovering
- easyJet aims for disciplined growth with a focus on popular airports
- Market drivers
- Consumers are more upbeat about their financial prospects than last year
- Graph 9: the financial confidence index, 2016-24
- Concerns about the cost of living persist
- Graph 10: perception of the state of the cost of living crisis in the UK, 2024
- Oil prices are expected to rise slightly in the coming year
- Graph 11: Europe Brent Spot price, yearly averages 2010-23, forecast for 2024-25
- Transition to net-zero puts pressure on ticket prices
- Air Passenger Duty rates increase
- London City Airport received approval to significantly increase passenger cap
- Plans to reform the slot allocation system could increase competition
- Raising awareness of EES and ETIAS to limit disruption
- Booking levels remain comparable to last year
- Graph 12: holiday bookings in the last three months, 2023 and 2024
- Holiday booking intentions are also at last year’s levels
- Graph 13: plans to book a holiday in the next three months, 2023 and 2024
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What Consumers Want and Why
- Flights taken
- Over half of the UK adult population flew in the past year
- Participation among younger passengers increased
- Graph 14: flights taken in the last 12 months, by age, 2019, 2023 and 2024
- Participation in VFR has recovered fastest
- Graph 15: flights taken in the last 12 months, by purpose, 2019, 2023 and 2024
- Flight frequency has not yet reached pre-pandemic levels
- Graph 16: frequency of flights taken in the past 12 months*, 2019, 2023 and 2024
- Economy class dominates air travel
- Graph 17: types of airline and classes of travel flown in the last 12 months, 2024
- Premium flying experiences not just appeal to the affluent
- Graph 18: classes of travel flown in the last 12 months, by annual household income, 2024
- Flight destinations
- The majority of UK passengers headed to European destinations
- Graph 19: flight destinations in the past 12 months, 2024
- 2023 destination stats
- Protests in European destinations call for a focus on quieter destinations
- Key customer groups of long-haul travel
- Domestic flyers are more likely to have travelled for business and VFR
- Future intentions to take flights
- Demand to fly remains strong
- Growth in participation will be driven by holidaymakers
- Graph 20: flights taken in the past 12 months vs intention to take flights in the next 12 months, by purpose, 2024
- Overseas destinations remain high on Brits’ wish lists
- Graph 21: destinations visited by plane in the past 12 months vs intention to visit in the next 12 months, 2024
- Nearly half of passengers plan to spend more on flying
- Graph 22: [no title]
- Decisive factors when choosing an airline
- A low price has the biggest influence on airline choice…
- …but there are opportunities to promote upgrades
- Graph 23: factors that most influence choice of airline, 2024
- The importance for all airlines to make it easy to find a good price
- Graph 24: the importance of a low price when choosing an airline, by types of airline and classes of travel flown, 2024
- Brands make it easier for travellers to find a good deal
- Customer service plays an important role, regardless of the type of airline or class flown
- Graph 25: the importance of good customer service when choosing an airline, by types of airline and classes of travel flown, 2024
- Offering Wi-Fi in premium seats can help encourage upgrades
- Graph 26: [no title]
- Offering Wi-Fi as part of loyalty programs can increase appeal
- Attitudes toward onboard Wi-Fi
- The vast majority want to stay connected while flying
- Interest in internet access while flying is strong across demographics
- Younger passengers want access to all the possibilities of the internet
- Graph 27: interest in onboard Wi-Fi services, by age, 2024
- About three in 10 passengers are willing to pay for inflight messaging, browsing or streaming
- Passenger groups most willing to pay for internet access
- Onboard Wi-Fi is not a primary decision factor but its significance varies across passenger groups
- Flying behaviours and attitudes
- Most travellers return to the same airline
- Low prices and direct flights are important reasons for travellers to switch airlines
- Graph 28: most important factors when choosing an airline, by level of loyalty, 2024
- Over four in 10 passengers participate in an airline’s loyalty scheme
- Digital menus can entice travellers to opt for premium food and drinks
- Graph 29: willingness to pay for premium onboard food and drink, 2024
- Transparency is key when making environmental claims
- Graph 30: willingness to pay for offsetting emissions, 2024
- Airport lounges have a strong appeal
- Graph 31: willingness to pay for access to an airport lounge, 2024
- Ticket price display preference
- More passengers prefer bundled fares
- Graph 32: ticket price display preference, 2024
- Customer groups with a relatively strong preference for bundled fares
- Consumer groups with a relatively strong preference for base fares
- Barriers to flying
- The group that does not plan to fly remained stable
- Costs outweigh the environment in the decision not to fly
- Cost and travel plans that do not require a flight are the top reasons consumers avoid flying
- Graph 33: reasons not to travel by air in the next 12 months, 2024
- Offering services that make air travel more convenient will appeal to older travellers
- Graph 34: reasons not to travel by air in the next 12 months, by age, 2024
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Innovation And Marketing Trends
- Launch activity and innovation
- Seatback screen content becomes more personalised
- Qatar Airways’ new Qsuite Next Gen offers greater comfort and personalisation
- Airlines are implementing generative AI across their business
- Innovations to make flying more accessible and inclusive
- Airlines are launching sustainability initiatives, but some face greenwashing accusations
- UK-based Global Airlines plans to launch passenger flights in 2025
- BARK Air launches to make travelling with pets more fun and convenient
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Appendix
- Supplementary data
- Turkey, Greece and Portugal significantly surpassed pre-pandemic levels in 2023
- Frequency of flights by purpose of flights
- Jet2 had the highest estimated above-the-line, online display and direct mail ad spend in 2023
- Market forecast data and methodology
- Market size
- Market forecast and prediction intervals for the total volume of passenger numbers uplifted at UK airports
- Market forecast and prediction intervals for the volume of international passenger numbers uplifted at UK airports
- Market forecast and prediction intervals for the volume of domestic passenger numbers uplifted at UK airports
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Consumer research methodology
- Nielsen Ad Intel coverage
- Snoop SpendMapper methodology
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