Exclusive extracts from this 69-page-long report:
- Who are the key players?
The coming of age of Low Cost Carriers (LCCs) and the development of a new Ultra-LCC class of carriers have rapidly altered competition dynamics. In today's extremely competitive marketplace, traditional full-service airlines are pursuing restructuring and cost efficiency initiatives. Most full-service carriers own/operate short-haul LCC airlines and are currently launching long-haul LCC arms. Moreover, their overall pricing model is increasingly more segmented, with a growing adoption of basic, no-frill tickets in the economy category (basic economy). [...]
Groups analysed in this report include: American Airlines, Lufthansa, Air France-KLM, Emirates, IAG, China Southern Airlines, Latam, Aeroflot Airlines, Ryanair and AirAsia.
- What are the players' strategies?
American Airlines is making moves to expand its presence both in the United States and globally. In the United States, it is adding flights in smaller cities, where it faces less discount airline competition. For example, since 2018, American Airlines has given its customers from the Midwest and Texas more access to Philadelphia International Airport. On a global level, it is entering into partnerships to expand its presence. It acquired 2.7% of outstanding shares in China Southern Airlines for $203 million in the third quarter of 2017. […]
- What are the players' key growth and profitability drivers?
In 2017, Air France-KLM generated operating income of €1.5 billion, up 42% relative to 2016, while net debt was reduced by €2 billion. These results were due to capacity growth, increased unit revenue, and stable unit costs. Nonetheless, the net result (group share) stood at -€274 million. This was due to a non-current net expense of €1,429 million related to two KLM pension plans. [...]