US airlines are on course for record-high revenue of $258.2 bn in 2025, up 4.2% year-over-year. This comes despite rough patches throughout the year, marked by consumer trepidation and government-mandated…
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Travel
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US Airlines Market Report 2025
"The airline industry continues to chase premium customers, forcing carriers to be more in tune with a new crop of travelers interested in options beyond low cost."
US airlines are on course for record-high revenue of $258.2 bn in 2025, up 4.2% year-over-year. This comes despite rough patches throughout the year, marked by consumer trepidation and government-mandated service cuts.
Airlines have been able to rely on the continued rise in outbound international travel and the current trend of travelers investing in premium-tier services to drive growth.
Carriers are competing to stand out to premium-interested consumers by providing the highest-quality and most-unique in-flight offerings. Gen Z and Millennial flyers demonstrate the greatest interest in premium services, so airlines must think about air travel as more than just transportation and consider the overall experience.
Building a brand identity that establishes an airline as a premium lifestyle brand, not just a premium airline, is becoming increasingly important. Carriers can accomplish this through their loyalty programs and a growing network of brand partnerships that make the brand more relevant to passengers’ everyday lives.
Economic uncertainty can give some potential travelers pause, so carriers must be able to articulate their benefits (premium or otherwise), and deliver consistently, if not only drive booking intent now, but also to establish a baseline for improved economic conditions in the future.
Key Issues Covered in the Report:
The growth of premiumization in the airline sector
Flying habits, including what sets Premium flyers apart from Economy flyers
Booking features that passengers find most appealing
How airlines can strengthen brand loyalty
Ancillary features passengers are willing to pay for
How passengers view airline brands
Opportunities for airlines
Report Attributes
Details
Published Date
November 2025
Data Range
2019-2030
Measurement Metrics
Revenue in US $
Country Focus
United States of America (US)
Consumer Data
2,000 internet users aged 18+, October 2025
Number of Pages
57
Market Segmentation
Airfares, Baggage Fees, Reservation Change and Cancellation Fees, In-Flight Onboard Sales (Food, Liquor, Pillows), Codeshare Revenues, Pet Transportation Fees, Standby Passenger Fees, Frequent Flyer Award Miles, and Public Service Subsidy.
Leading Companies
American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, JetBlue, Frontier Airlines, Spirit Airlines, and Ryanair.
Collapse All
EXECUTIVE SUMMARY
What you need to know
Outlook for airlines
Opportunities
Make flight payments more accessible
Engage passengers with relevant lifestyle loyalty programs
A seamless journey starts at the inspiration stage
THE MARKET
Snapshot – market size and forecast
Market factors
Consumers brace for a rougher holiday season
Government actions make carriers’ jobs harder
Airlines have struggled to maintain pricing power
Graph 1: average domestic airline itinerary fees, in inflation-adjusted dollars, 2023-25
Global interest in premium flights is rising
Graph 2: share of international cabin class, by region, 2024
Passenger count looks to stagnate
Market size and forecast
Airline revenue set to grow despite economic uncertainty
Total revenue and forecast for airlines
Graph 3: passenger airline operating revenue and forecast, at current prices, 2019-30
Market size and forecast of airlines, at current prices
Increased activity, especially among higher spenders, to lift all revenue segments
Key players
Legacy airlines lean into the premiumization that has brought profits
LCCs try to go upscale, but risk core identity
ULCCs adjust to market shifts
THE CONSUMER
Flying habits in the past 12 months
Bleisure’s growth increases interest in premium options
Flyers are gravitating toward more experiential transportation
Graph 4: destination and fare class of last flight taken, 2025 vs 2023
A younger premium market is exploring provider options
Graph 5: fare class of last flight taken, 2025
Booking habits and desired features
Incentivize direct bookings among younger flyers exploring booking sources
Graph 6: typical booking behavior, by generation, 2025
Premium flyers shop around for the best experience
Target demos see social as the next booking platform
Graph 7: desired airline booking features, by generation, 2025
Graph 8: desired airline booking features, by fare class of last flight taken, 2025
Southwest introduces shoppable TikTok posts
Consumers are wary of being exploited by AI
Graph 9: attitudes toward airlines’ use of AI, by generation, 2025
Amenity appeal and upsell opportunities
Flyers no longer just chase fares
Graph 10: top three factors in deciding to keep flying with an airline – net any selected, 2025
Future flyers won’t want to just be taken from A to B
Graph 11: top three factors in deciding to keep flying with an airline – net any selected, by generation, 2025
Elevated amenities must be paired with elevated service
Graph 12: top three factors in deciding to keep flying with an airline – net any selected, by fare class of last flight taken, 2025
American woos passengers with better in-flight options, increased convenience
Food and entertainment are the broadest drivers of ancillary revenue
Graph 13: flight features worth paying more for, 2025
Premium flyers give airlines permission to get creative
Delta’s in-flight experience gives passengers options they don’t get at home
Gen Z prioritizes personal device entertainment, better sleep
Graph 14: top three flight features worth paying more for, Gen Z and Millennials vs all, 2025
Loyalty and brand associations
Carriers have trouble connecting with passenger loyalty
United’s debit card arrives to increase loyalty among younger travelers
Make loyalty programs more appealing to Premium flyers
Graph 15: airline loyalty membership, by fare class of last flight, 2025
Look outside transportation to improve brand relevance
Flyers think of airlines by class identity
Loyalty can encourage familiarity, and in turn improve sentiment
Use gamification, upgrades to promote repeat business
PRODUCT, INNOVATION AND MARKETING
Provide experiential loyalty rewards to rise above fee increases
Stay involved with loyalty members in fun ways
Look to private jets for cues on where to premiumize
Transportation diversity can create more revenue opportunities
Personality attracts target customers on social
APPENDIX
Report scope and market definition
The market
Forecast methodology
Forecast methodology – fan chart
Market size and forecast of airlines, at inflation-adjusted prices
Market size and forecast of airfare, at current prices
Market size and forecast of airfare, at inflation-adjusted prices
Market size and forecast of baggage fees, at current prices
Market size and forecast of baggage fees, at inflation-adjusted prices
Market size and forecast of change/cancellation fees, at current prices
Market size and forecast of change/cancellation fees, at inflation-adjusted prices
Market size and forecast of other revenues, at current prices
Market size and forecast of other revenues, at inflation-adjusted prices
Market forecast and prediction intervals
The consumer
Consumer research questions
Consumer research methodology
Correspondence analysis methodology
Correspondence analysis
US generation groups
Abbreviations
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