PUBLISHER: The Insight Partners | PRODUCT CODE: 1452547
PUBLISHER: The Insight Partners | PRODUCT CODE: 1452547
The North America airline ancillary services market was valued at US$ 64,703.06 million in 2022 and is expected to reach US$ 289,342.00 million by 2030; it is estimated to grow at a CAGR of 20.6% from 2022 to 2030.
Rising Preference of Air Travel by Middle-Income Passengers fuels the North America Airline Ancillary Services Market
As per International Air Transport Association (IATA), the number of passengers traveling by air is expected to reach ~7.8 billion by 2036. The rapidly emerging middle-class segment majorly influences the growth in passengers travelling through airways in developing economies. In October 2021, world organizations such as United Nations World Tourism Organization (UNWTO) and the International Civil Aviation Organization partnered to support the safe restart of travel and tourism. In October 2020, UNWTO and IATA inked a Memorandum of Understanding to work together to restart global tourism. This agreement was focused on enhancing the confidence of the general public in air travel, which further helped increase air traffic.
An exponential growth of working groups in developing countries has increased freight traffic disposable income. According to the United Nations, the growing number of middle-class travelers is the primary factor contributing to the growth of air travel and various ancillary services. As the world recovers from economic contractions, the demand for air travel increases. The rising air travel demand has resulted in the augmented production of commercial aircraft, which has considerably contributed to the growth of various ancillary services, such as in-flight Wi-Fi, excess luggage, food and beverages, and in-flight shopping. According to IATA, in 2019, there were 4.54 billion air passengers, and in 2023, global air passengers reached 95% of pre-pandemic levels, which is 4.35 billion people. These mounting numbers of passengers across the world are demanding various parameters to make flight hours more exciting and comfortable. In-flight catering or in-flight culinary is one of the key trends among full-service carriers as well as low-cost carriers. The increasing focus on offering enhanced services to flight passengers and the rising number of aviation passengers worldwide are driving the North America airline ancillary services market.
North America Airline Ancillary Services Market Overview
North America had primed its contribution to the global airlines industry. However, the region is expected to experience shrinkage in its profitability in the coming years as the cost pressure pertains to growth. On the other side, North America would continue to generate relatively greater profit in the coming years due to the growth of the global airline industry. In addition, North America reported a 51.6% increase in air traffic in March 2023 compared to 2022. The capacity of carrying passengers increased by 34.0%, which shows North America is dominating in providing airline services, including airline ancillary services.
North America Airline Ancillary Services Market Revenue and Forecast to 2030 (US$ Bn)
North America Airline Ancillary Services Market Segmentation
The North America airline ancillary services market is segmented into type, carrier type, and country.
Based on type, the North America airline ancillary services market is divided into baggage fees, on-board retail and a la carte services, airline retail, and FFP mile sales. The baggage fees segment held the largest market share in 2022.
By carrier type, the North America airline ancillary services market is bifurcated into full-service carriers and low-cost carriers. The full-service carriers segment held a larger market share in 2022.
Based on country, the North America airline ancillary services market is segmented into the US, Canada, and Mexico. The US dominated the North America airline ancillary services market in 2022.
Air France KLM SA, American Airlines Group Inc, Delta Air Lines Inc, Deutsche Lufthansa AG, Southwest Airlines Co, and United Airlines Holdings Inc are some of the leading companies operating in the North America airline ancillary services market.