Passenger Aviation

Passenger Aviation covers the airlines that carry passengers by air, plus the support, MRO, and consumer services around them. At roughly $229 billion the U.S. airline industry is large, capital- and labor-intensive, cyclical, and historically low-margin — consolidated around four majors (American, Delta, United, Southwest) that control roughly 80% of domestic capacity after a wave of mergers.

The industry was devastated by COVID-19 (a near-total 2020 collapse) and has recovered strongly, with demand and revenue surpassing pre-pandemic levels. It now faces pilot and labor shortages, aircraft-delivery constraints (Boeing's production troubles limiting capacity), and the perennial profitability challenge — even as loyalty and co-branded credit-card programs have become major profit engines. The ultra-low-cost model has struggled recently (Spirit's bankruptcy, blocked mergers), and demand remains cyclical with the economy and fuel prices.