2025
9
US Airlines Market Report 2025
2025-11-25T14:02:05+00:00
REPE476BBD1_26F5_4331_802D_F4AD77B1EBDC
3695
188966
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Report
en_GB
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…
US
Travel
simple

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."

Mike Gallinari, Senior Travel & Leisure Analyst

Mike Gallinari, Senior Travel & Leisure Analyst

US Airlines Market – Trends and Insights

  • 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 AttributesDetails
Published DateNovember 2025
Data Range2019-2030
Measurement MetricsRevenue in US $
Country FocusUnited States of America (US)
Consumer Data2,000 internet users aged 18+, October 2025
Number of Pages57
Market SegmentationAirfares, 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 CompaniesAmerican Airlines, Delta Air Lines, United Airlines, Southwest Airlines, JetBlue, Frontier Airlines, Spirit Airlines, and Ryanair.
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  1. 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
  2. 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
  3. 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
  4. 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
  5. 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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