Airlines

Airlines are rebuilding their business models around premium demand, moving from volume to yield. Premium is now the norm, though the industry runs the risk of oversupply if luxury demand falters

Consumer love for travel, rising demographics, and exciting innovation square off against unstable geopolitics, affordability challenges, and a lukewarm economic expansion

The low-cost airline model still works in the U.S., but only in two forms: network exclusivity or premium-lite pricing. Ultra-low-cost carriers that hesitate will end up consolidating by force, not choice.

In Europe’s airline market, cost discipline beats scale — ultra-low-cost carriers lead on margins, while legacy giants rely on consolidation and strategy to stay competitive.

Despite strong demand and hiring momentum, travel is stuck in a cycle of churn — with pay gaps, skills shortages, and weak career pathways making talent the sector’s biggest growth challenge.

For today’s airlines, technology isn’t just a differentiator — it’s a competitive advantage. Passenger-facing innovations are now standard and delivering significant returns.

The future of travel is unfolding now; you just need the right data and insights to see it. The State of Travel report is your essential guide to understanding the trends shaping our industry and staying ahead of the modern traveler as a company, association, or destination.

The global airline sector is in a growth phase, projected to reach $949 billion by 2026, driven by strong leisure demand and the significant rebound of business travel.

As major financial powerhouses and robust passenger engagement engines, airline loyalty programs are leveraging technology for hyper-personalisation, with a strong focus on engaging less frequent flyers.

You have to be at least a little obsessed with Google if you want to understand how the business of travel gets done. New data shows that AI has become dramatically more prevalent in travel search over the last six months, with significant downstream implications for travel brands.

The remarkable resilience of the airline industry in the post-pandemic period is being tested once again, this time by a forced restructuring of the global economic order. As a result of recent tariff announcements, economic uncertainties are likely to reduce passenger demand, compel airlines to adjust their capacity, exacerbate supply chain issues, and potentially lead to some airlines going out of business

Recession alarm bells are going off. A global downturn isn't our base case, but it's still worth reviewing how the travel industry might perform in a worst-case scenario. Even in a turbulent market, travel won't stop — it will shift.