The Bounce Back and Potential Opportunities in the Global Aviation Industry

Global aviation market is projected to grow at a CAGR of 13.4% during the forecast period (2024-2031) and is projected to reach $1.9 trillion in 2031. The market is anticipated to grow owing to the rebounding demand for passenger air travel, particularly in regions including Asia-Pacific and North America, with accelerated economic growth, and increased consumer spending. Global passenger demand, measured in Revenue Passenger Kilometers (RPKs), saw a 10.7% increase compared to May 2023. Meanwhile, total capacity, measured in Available Seat Kilometers (ASK), grew by 8.5% year-on-year. The load factor reached a record high for May at 83.4%.

The aviation market is classified based on flight type, travel class, and geography. Based on flight type, the market is segmented into international flights, and domestic flights. Based on travel class, the market is segmented into first class, business class, and economy class. Based on geography the market is segmented in North America, Europe, Asia-Pacific, and the Rest of the World.  

Competitive Landscape

United Airlines Holdings, Delta Air Lines, American Airlines, Lufthansa Group, and The Emirates Group are among the leading airlines globally. Together, these carriers hold a 31.8% share of the global airline market. In 2023, these players transported approximately 700 million passengers.

Global Aviation Market Size and Forecast by Travel Class, 2031 (%)     

In 2031, the Economy class is anticipated to constitute the majority of the market share, at 77.9%, growing at a CAGR of 13.7% during the forecast period. The First-class aviation sector is growing at the fastest rate, with a CAGR of 14.0%, driven by increasing disposable income and rising demand from affluent customers. In 2023, the market size for First class was $57.8 billion. According to the International Air Transport Association (IATA), in June 2024, total revenues, expenses, travelers and air cargo volumes are expected to reach a record high of $996 billion (+9.7%), $936 billion (+9.4%), and 4.96 billion respectively.   

Global Aviation Market Size and Forecast by Region, 2025 ($ Billion)

North America held the highest market share of 38.5% in 2023 and is growing at a CAGR of 13.0% during the forecast period. The region will continue to dominate, owing to the development and integration of Sustainable Aviation Fuels (SAFs) and electric aircraft to reduce the carbon footprint of the industry. Additionally, Asia-Pacific is projected to be the fastest-growing market with a CAGR of 15.4% during the forecast period, driven by rising disposable incomes, urbanization, and expanding tourism sectors. 

In recent years, numerous new entrants have emerged in the aviation sector, successfully adopting the low-cost carrier model, particularly within emerging markets. This business model is gaining significant traction among various regions and airlines, with newer companies establishing low-cost fleets and traditional carriers adopting similar strategies through the deployment of differentiated fleets that emphasize economical travel options. Regions such as Asia, Africa, and Latin America have embraced these models, with a substantial number of airlines, including Indigo, Fastjet, and AirAsia, operating under this framework.