How Has The State Of Air Travel In The U.S. Changed Over The Years?

-32.50%
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7.42
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Air travel in the United States, over the years, has seen a marked change in the way the aviation industry functions. From its inception in 1903, when flying was considered a risky proposition, air travel has now emerged as the preferred means of transportation for long distances between major cities. Further, the aviation industry is now considered an important indicator of affluence and economic prosperity of a country. By stimulating manufacturing activity, the sector not only generates jobs, but also contributes towards the gross domestic production of a country. In the U.S., the aviation industry contributes roughly 4%-5% towards the total GDP. However, post the deregulation of the sector in the 1970s, a number of recessions have hit the U.S., affecting the state of air travel. Despite increased competition, a slowdown in economic activity caused the demand for air travel to fall due to a decrease in business travel, and increased the costs of flying substantially because of the rise in labor and fuel costs.

In the following note, we discuss how the air travel in the U.S. has transformed over the years to galvanize into a more affordable and satisfactory experience.

  • Increase In Number Of People Who Use Air Travel

Due to the increased competition in the sector, the air fares offered by different carriers have been consistently slashed. This means that air travel is no longer only for the elite. Its affordability has propelled the percentage of people who have ever used air transportation to go up from less than 50% in 1970 to over 80% in 2015.

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  • Increase In the Frequency Of Air Travel

As air travel became more affordable, not only did the number of passengers using air travel increase, but also the frequency of trips taken by people rose.

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  • Changing Reasons For Travel

In the 1990s, the main reason people used flights was for business travel.  Since then, total trips taken for business-related reasons has fallen by over 15%. Personal leisure trips have now overtaken business trips as the pre-eminent reason for U.S. airline travel.

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  • Domestic Is Responsible For Majority Of The Travel

Most Americans use air travel to go to domestic destinations, as opposed to other regions. Domestic travel comprises of over 60% of all trips. The average length of these domestic trips is 5.7 nights.

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  • Affordability Is The Most Important Criterion

While affordability is the deciding factor behind air travel, another important factor is free baggage check-in.
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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for JetBlue Corporation

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