Clear skies: Operators have increased focus on ancillary services to increase profit and revenue

The Scheduled Air Transportation industry in Canada has taken flight over the five years to 2019 as rising levels of disposable income have enabled more consumers to purchase airline tickets, while the relatively weak Canadian dollar has encouraged substantial inbound travel from foreign consumers visiting Canada. The industry has slowly liberalized over the past few decades as the Canadian government has eased aviation regulation, enabling the emergence of low-cost carriers and altering the competitive environment. The industry is still dominated by large established network carriers. The industry is expected to continue growing as rebounding levels of corporate profit and outbound international travel stimulate demand for previously lagging segments...read more.

Industry Statistics & Market Size
Revenue
$26bn
Annual Growth 14-19
4.1%
Forecast Growth 19-24
Profit
Employment
60,360
Businesses
140

Industry Threats & Opportunities

  • Industry profit margins will remain constrained due to internal competition
  • The depreciation of the Canadian dollar has made international travel expensive
  • Some existing operators are expected to open new facilities and hire new workers
  • Industry Report - Starting a New Business Chapter

    The Scheduled Air Transportation industry in Canada has significant barriers to entry. Start-up costs, which include initial expenses on hangar and airfield space, skilled labour, highly specialized machinery and adherence to stringent safety requirements, are extremely high for operators in this industry. For instance, purchasing aircraft may cost millions of dollars, which may be hard to secure given the competitive nature of the industry. Complying with government requirements is also costly and timely, making it harder to enter the industry. Skilled labour may also be difficult to find in times of pilot shortage, considering the extensive training required to be able to work in the industry...purchase to read more.

    Additional Insights for the Scheduled Air Transportation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Scheduled Air Transportation Industry are

  • Optimum capacity utilization
  • Effective cost controls
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Corporate profit in the Scheduled Air Transportation industry impact industry performance..

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    What's in this report

    What is the Scheduled Air Transportation Industry?

    This industry provides air transportation for passengers and cargo over regular routes and on regular schedules. Network carriers operate a significant portion of their flights using at least one hub where connections are made for flights on a spoke system. Regional carriers provide service from small cities, mostly using smaller aircraft and jets to support the network carriers’ hub and spoke systems. Airlines that transport mail are included in this industry.

    Industry Products
  • Scheduled domestic travel
  • Scheduled US-transborder travel
  • Scheduled non-US international travel
  • Scheduled cargo transportation
  • Industry Activities
  • Scheduled domestic air passenger transportation
  • Scheduled transborder air passenger transportation
  • Scheduled international air passenger transportation
  • Scheduled helicopter passenger transportation
  • Scheduled air freight transportation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Corporate profit
  • Inbound international travel
  • International trips by Canadian residents
  • World price of crude oil

  • Current Performance
  • Competition and industry structure
  • International travel
  • Oil prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition rising on new routes
  • Revenue prospects
  • Profit margins stagnate
  • Table: Scheduled Air Transportation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Scheduled Air Transportation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Freight Forwarding Brokerages & Agencies in Canada
  • Public Administration in Canada
  • Couriers & Local Delivery Services in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Aircraft Maintenance, Repair & Overhaul in Canada
  • Aircraft, Engine & Parts Manufacturing in Canada
  • Airport Operations in Canada
  • Gasoline & Petroleum Wholesaling in Canada

  • Products & Services
  • Scheduled domestic travel
  • Scheduled non-US international travel
  • Scheduled US-transborder travel
  • Other
  • Scheduled cargo transportation
  • Chart: Scheduled Air Transportation Industry Products and Services Segmentation

  • Demand Determinants
  • Leisure travel
  • Business travel
  • Cargo transportation
  • Sudden changes

  • Major Markets
  • Passengers in highest income quintile
  • Passengers in fourth income quintile
  • Passengers in third income quintile
  • Passengers in second income quintile
  • Passengers in lowest income quintile
  • Freight and mail markets
  • Chart: Major Market Segmentation for the Scheduled Air Transportation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Scheduled Air Transportation

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Scheduled Air Transportation Industry

  • Industry Globalization
    Air Canada, WestJet Airlines Ltd.,
  • Table: Air Canada - financial performance
  • Table: WestJet Airlines Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Scheduled Air Transportation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Scheduled Air Transportation Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • World price of crude oil (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cargo
  • Goods or produce transported, generally for commercial gain.
  • Hub
  • An airport that an airline uses as a transfer point to get passengers to their intended destination.
  • Revenue Passenger Miles
  • A measure calculated using the total number of revenue-paying passengers aboard a vehicle by the distance travelled measured in miles.
  • Revenue Tonne Miles
  • A measure of freight traffic on board an aircraft, calculated using the total weight of the cargo aboard the vehicle by the distance travelled measured in miles.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Scheduled Air Transportation market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Scheduled Air Transportation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Scheduled Air Transportation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Scheduled Air Transportation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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