summary
- Southwest Airlines, once the largest U.S. airline market, has lost more than 3% of its market share as competition for lower prices has increased.
- American Airlines moved to the top with 17.5% market share, while Delta Air Lines also increased its market share slightly.
- JetBlue Airways, Alaska Airlines, Spirit Airlines and Frontier Airlines have all gained market share, while SkyWest Airlines has lost significant market share in its regional division.
The COVID-19 pandemic has undoubtedly changed the way people fly. The rise in remote work has led to a significant drop in business travel, and many airlines are operating with fewer business class seats. In contrast, leisure travel continues to grow in popularity in an environment where people tend to leave the office for long periods of time.
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As a result of these changes in the aviation market, while some airlines have gained market prominence in the wake of the pandemic, others have unfortunately not been so lucky. So, which US airlines have gained market share as a result of the pandemic, and which ones have lost market share? This article answers this important question.
the king has fallen
In 2018, Southwest Airlines reigned supreme as the US market leader, with a 20% monopoly on the domestic airline market. Before the pandemic, the company flew 132 million passengers annually. However, over the last five years, more companies have entered the market, making Southwest’s low-cost competition intensifying. In 2022, the telco’s market share will drop to just 16.9%, equivalent to a decline of more than 3%.
traditional big 3
All three US traditional full-service network airlines have increased their market share since 2018. Specifically, American Airlines, which held the number three position in the US market, jumped to the top with 17.5% market share in 2022. Before the pandemic, the US held a 15% market share and carried nearly 100 million passengers in 2018.
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Delta Air Lines has also increased its passenger numbers, despite holding the No. 2 position in market share both years. In 2018, Delta flew 106 million passengers and maintained a 16% market share. Currently, the company maintains a slightly larger share of his 17.3% in the US aviation market.
United Airlines remained in fourth place by market share before the pandemic and now. The company served about 72 million passengers in his 2018 with 11% of his market share. The airline now holds his much larger market share of 15.6%. Therefore, United Airlines experienced the largest market share growth in the last five years.
Overall, the three legacy carriers have significantly increased their combined market share. In 2018, the three airlines combined accounted for just over 40% of the U.S. market, but now more than 50% of his passengers fly with Delta, American or United.
Other airlines in the US market
JetBlue Airways and Alaska Airlines are airlines that occupy a unique market space between traditional companies and ultra-low-cost carriers, and both are gaining market share. JetBlue increased from 4% to 5.5% and Alaska Airlines increased even more from 4% to 6.2%.
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In the ultra-affordable market, both Spirit and Frontier are gaining share. Spirit’s market share increased from 3% to 5%, as did Frontier’s market where he increased from 2% to 3.3%.
In the regional sector, SkyWest Airlines lost significant market share. The regional market leader’s share fell from 5% to 2.8%.
