Airport Operations in the US Industry Market Research Report From IBISWorld Has Been Updated

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Despite improving conditions in the years prior, revenue for The Airport Operations industry took a significant hit during the recession; however, air travel is expected to continue its ongoing recovery from the recession, leading to higher landing fees and airport activity. For these reasons, industry research firm IBISWorld has updated a report on the Airport Operations industry in its growing industry report collection.

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Increased air travel and new aircraft deliveries will boost demand for airport operators

The Airport Operations industry has benefited from the recovery of related air transportation industries over the past five years. Despite improving conditions in the years prior, revenue took a significant hit during the recession. Airport operators experienced a decline of 7.6% in revenue in 2009 due to plummeting demand from major airlines and lower passenger numbers. In 2010, major airlines announced capacity cuts, most of which remained in force. Higher fuel costs and slowing demand were the initial main drivers behind this decision; however, the receding economy took over as the major driver for capacity reductions. Since then, however, the industry has experienced positive revenue growth, as demand from domestic and international airlines has increased and travel rates have returned to normal. The industry is expected to charge ahead in 2013 as revenue jumps an estimated 4.3% to $21.2 billion. Despite such growth, over the five years to 2013, IBISWorld expects revenue to grow at an annualized rate of just 0.6%, as key markets have recovered slowly.

According to IBISWorld Industry Analyst Andy Brennan, “There is an increasing disparity within the industry between large international airports and regional airports that service local markets.” The most profitable airports in the United States are all international airports that can demand higher landing fees and rental rates for their buildings. These include Newark International, John F Kennedy International and Miami International Airports. Nevertheless, the Airport Operations industry has a low level of concentration. The concentration has remained relatively constant over the past five years, with operators continuing to struggle to gain larger market share in this mature industry.

“Air travel is expected to continue its ongoing recovery from the recession, leading to higher landing fees and airport activity,” says Brennan. Demand from domestic and international airlines is expected to grow, giving airports more bargaining power in negotiating landing fees and other charges.

For more information, visit IBISWorld’s Plastic Bottle Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

The Airport Operations industry includes businesses that operate international, national or civil airports or public flying fields. It also includes operators that support airports, offering aircraft refueling, aircraft parking, hangar space rental, air traffic control services, cargo handling services and others. This industry does not include wholesaling fuel at airports, providing janitorial services at airports, providing food services at airports and conversion and rebuilding of aircraft.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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