Table of Contents
Executive Summary
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- The market
- Significant slowdown in market growth
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- Figure 1: International passenger numbers uplifted at UK airports, 2014-24
- Figure 2: Domestic passenger numbers uplifted from UK airports, 2014-24
- Increasing environmental pressures on aviation industry
- Overcapacity in Europe puts downward pressure on airfares
- Companies and brands
- Jet2.com fastest growing major UK airline
- Virgin Atlantic strengthens position as Connect Airways acquires Flybe
- New developments around electric aircrafts that take off vertically
- Dubai International plans to become a destination in its own right
- Capacity optimisation by Volantio
- The consumer
- Over half of UK adults travelled by air in the year to June 2019
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- Figure 3: Flights taken, June 2019
- Holidays account for largest share of flights taken
- Almost one third of passengers flew domestically
- Loyalty can be increased through subscription models
- Flexibility in booking process allows travellers to shape their own experience
- Almost one in three passengers makes use of an airline’s app
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- Figure 4: Use of airlines’ and airports’ services, June 2019
- Roughly 4 in 10 passengers would be interested in booking holiday excursions/activities on board
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- Figure 5: Attitudes towards leisure activities at airports and buying experiences on board, June 2019
- Alcohol most purchased duty free product with an airline
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- Figure 6: Purchased duty free products, June 2019
- Long-haul passengers willing to pay for a better flying experience
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- Figure 7: Price versus flying experience, June 2019
- Almost half of passengers think their own devices are more convenient
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- Figure 8: Attitudes towards in-flight entertainment and interaction, June 2019
- The majority of passengers expect airlines to develop alternative fuels
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- Figure 9: Attitudes towards sustainability and travelling by train, June 2019
- What we think
Issues and Insights
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- Increasing environmental pressures on growing aviation industry
- The facts
- The implications
- Price vs experience
- The facts
- The implications
The Market – What You Need to Know
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- Significant slowdown in market growth
- Increasing environmental pressures on aviation industry
- Several airlines have gone bust amid rising oil prices
- Overcapacity in Europe puts downward pressure on airfares
- Airlines face rising labour costs
- British Airways’ data breach could lead to a hefty fine
Market Size and Forecast
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- Significant slowdown in market growth
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- Figure 10: Passenger numbers uplifted at UK airports, 2014-24
- International traffic expected to be hit harder than domestic traffic in 2019
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- Figure 11: Total passenger numbers uplifted at UK airports, 2014-24
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- Figure 12: International passenger numbers uplifted at UK airports, 2014-24
- Figure 13: Domestic passenger numbers uplifted from UK airports, 2014-24
- Forecast methodology
Market Segmentation - Overseas Flights Taken By UK Residents
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- Softer demand for overseas flights after seven years of consecutive growth
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- Figure 14: Overseas trips taken by UK residents, by mode of transport, 2015-18
- Holidays; the only segment within overseas air travel to record growth in 2018
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- Figure 15: Overseas trips taken by air by UK residents, by purpose, 2015-18
- Italy outperformed top 10 destinations in terms of growth in 2018
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- Figure 16: Overseas trips taken by air by UK residents, by destination, 2015-18
Market Drivers
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- Brexit uncertainties impact demand for overseas holidays and business trips
- Increasing environmental pressures on aviation industry
- Several airlines have gone bust amid rising oil prices
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- Figure 17: Europe Brent Spot price, yearly averages 2010-18, forecast 2019-20 per July 2019
- Overcapacity in Europe puts downward pressure on airfares
- Airlines face rising labour costs
- Grounding of Boeing 737 MAX aircraft impacts airlines’ profits
- British Airways’ data breach could lead to a hefty fine
Companies and Brands – What You Need to Know
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- Jet2.com fastest growing major UK airline
- Virgin Atlantic strengthens position as Connect Airways acquires Flybe
- New developments around electric aircrafts that take off vertically
- KLM raises awareness of sustainable aviation being a joint responsibility
- Dubai International plans to become a destination in its own right
- Capacity optimisation by Volantio
- Eurowings and Lufthansa above-the-line spend increased significantly
Market Share
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- Jet2.com fastest growing major UK airline
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- Figure 18: Top 10 UK-based* airlines, by passenger numbers uplifted globally, 2013-18
- Virgin Atlantic strengthens position as Connect Airways acquires Flybe
Launch Activity and Innovation
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- New aircraft on the horizon
- Hybrid Air Vehicles develops hybrid aircraft for more sustainable flights
- New developments around electric aircrafts that take off vertically
- Airlines are looking to reduce their emissions
- LanzaTech’s sustainable fuel used for first commercial flight by Virgin Atlantic
- KLM raises awareness of sustainable aviation being a joint responsibility
- New services to enhance the check-in experience for morning flights
- Jet2holidays expanded its Twilight Check-In service
- Wake Up at the Gate package for families at Dubai International Airport
- Airports strive to offer the best experience
- Jewel Changi Airport has opened its doors
- Dubai International plans to become a destination in its own right
- Data-driven approach to increase airlines’ revenue
- Capacity optimisation by Volantio
- Migacore develops demand forecasting models for travel industry
Advertising and Marketing Activity
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- Above-the-line spend by airlines decreased by almost 4% in 2018
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- Figure 19: Total above-the-line, online display and direct mail advertising expenditure on ads by airlines, 2016-18
- Jet2.com focusses on trust and low fares in its national campaign in 2018
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- Figure 20: Top 10 above-the line, online display and direct mail advertising expenditure on ads by airlines, 2016-18
- Eurowings and Lufthansa above-the-line spend increased significantly
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 21: Attitudes towards and usage of selected brands, June 2019
- Key brand metrics
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- Figure 22: Key metrics for selected brands, June 2019
- Brand attitudes: easyJet most closely associated with offering good value
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- Figure 23: Attitudes, by brand, June 2019
- Brand personality: Ryanair is more likely to be considered unethical
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- Figure 24: Brand personality – Macro image, June 2019
- British Airways and Virgin Atlantic seen as special and stylish, but consumers believe this comes at a price
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- Figure 25: Brand personality – Micro image, June 2019
- Brand analysis
- British Airways has highest share of committed customers
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- Figure 26: User profile of British Airways, June 2019
- Many travellers had an excellent experience with Virgin Atlantic
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- Figure 27: User profile of Virgin Atlantic, June 2019
- Jet2.com has the highest satisfaction rating among selected low-cost airlines
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- Figure 28: User profile of Jet2.com, June 2019
- easyJet seen as more trustworthy than selected low-cost competitors
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- Figure 29: User profile of easyJet, June 2019
- Rebranding Flybe should pay off as awareness and differentiation remain behind
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- Figure 30: User profile of Flybe, June 2019
- Ryanair third most used airline despite poor image
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- Figure 31: User profile of Ryanair, June 2019
The Consumer – What You Need to Know
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- Over half of UK adults travelled by air in the year to June 2019
- Almost one third of passengers flew domestically
- Loyalty can be increased through subscription models
- Flexibility in booking process allows travellers to shape their own experience
- Alcohol most purchased duty free product with an airline
- Long-haul passengers willing to pay for a better flying experience
Flights Taken
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- Over half of UK adults travelled by air in the year to June 2019
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- Figure 32: Flights taken, June 2019
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- Figure 33: Participation and frequency in last 12 months, by demographics, June 2019
- Holidays account for largest share of flights taken
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- Figure 34: Flights taken, by purpose, June 2019
Flight Destinations
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- Almost one third of passengers flew domestically
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- Figure 35: Flight destinations, June 2019
Budget vs Full-service Airlines
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- Loyalty can be increased through subscription models
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- Figure 36: Airline types flown with in the last 12 months, June 2019
Classes Flown
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- Flexibility in booking process allows travellers to shape their own experience
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- Figure 37: Classes flown, June 2019
Airline and Airport Services
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- Almost one in three passengers make use of an airline’s app
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- Figure 38: Use of airlines’ and airports’ services, June 2019
- Roughly 4 in 10 passengers would be interested in booking holiday excursions/activities on board
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- Figure 39: Attitudes towards leisure activities at airports and buying experiences on board, June 2019
- Opportunities for airports to develop more leisure activities
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- Figure 40: Attitudes towards leisure activities at airports – CHAID analysis, June 2019
Duty Free Products
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- Alcohol most purchased duty free product with an airline
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- Figure 41: Purchased duty free products, June 2019
- About one third of duty free customers bought three or more products
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- Figure 42: Purchased duty free products - repertoire, June 2019
- Highest interest in duty free alcohol and fragrance, skincare or make-up
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- Figure 43: Considered duty free products, June 2019
- Alcohol duty free products mostly appeal to older generations
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- Figure 44: Considered duty free products, by demographics, June 2019
Price versus Experience
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- Long-haul passengers willing to pay for a better flying experience
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- Figure 45: Price versus flying experience, June 2019
- Many short-haul passengers are willing to accept lower levels of comfort for a lower ticket price
In-flight Entertainment and Interaction
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- Almost half of passengers think their own devices are more convenient
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- Figure 46: Attitudes towards in-flight entertainment and interaction, June 2019
- Virtual reality likely to appeal to families
Attitudes towards Sustainability
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- The majority of passengers expect airlines to develop alternative fuels
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- Figure 47: Attitudes towards sustainability and travelling by train, June 2019
- Younger generation keen on travelling by train
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- Figure 48: Attitudes towards sustainability and travelling by train, by demographics, June 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Definitions
- Consumer research methodology
- CHAID methodology
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- Figure 49: Airlines – CHAID – table output, June 2019
Appendix – Market Size and Forecast
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- Volume forecast for total passengers uplifted at UK airports
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- Figure 50: Total passenger numbers uplifted at UK airports, 2014-24
- Volume forecast for international passengers uplifted at UK airports
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- Figure 51: International passenger numbers uplifted at UK airports, 2014-24
- Volume forecast for domestic passengers uplifted at UK airports
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- Figure 52: Domestic passenger numbers uplifted from UK airports, 2014-24
- Forecast methodology
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