San Jose, California (PRWEB) January 19, 2009
Worsening economic scenario fuelled by credit market crisis is leading to a decline in air traffic chiefly as a result of waning demand for business travel. Boxed in with rising fuel costs and credit crunch, the airline industry is set to witness huge losses in the short-term. Fuel costs presently account for 38% of operating costs, as against 13% recorded in the year 2003, illustrating the magnitude of the impact of ever-rising crude oil prices. Freight volumes, and passenger traffic alike are forecast to witness lethargic growth in the upcoming years. Bearing the brunt of the unfavorable market conditions is North America.
The hitherto robust growth in traffic until now had enabled the airline industry to moderately absorb fuel cost hikes from 2003-2007, which does not happen any more, given the present sluggishness in global air travel. The situation continues to be bleak, and the combined lethal effect of rising fuel costs and waning air traffic continues to plague profitability in the airline industry, and the trend is forcing several airliners across the world and particularly in the US to close operations or minimize the workforce as well as fleet to pass through the troubled scenario.
However, as the industry recovers poise in the short to medium term, growth is forecasted to bounce back with the market regaining its lost momentum. Growth during this period will be chiefly driven by new concepts such as, E-ticketing, E-freight, and in-flight entertainment, and connectivity (broadband services), among others. Resurgence of economic growth, increase in Gross Domestic Product (GDP), revival of tourism and globalization induced air travel represent other factors poised to drive growth in the upcoming years.
The report titled "Airlines: A Global Outlook" provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers an aerial view of the global airline industry, identifies major short to medium term market challenges, and growth drivers. Market discussions in the report are punctuated with 45 fact-rich market data tables. Regional markets elaborated upon include United States, Canada, Mexico, Japan, France, Germany, UK, Russia, China, India, Brazil, and UAE, among others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 370 companies worldwide.
For more details about this research report, please visit
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