The air transport market - France

The global air transport market faced a significant slowdown from 2020 due to the COVID-19 pandemic, with a 60% drop in passenger segment revenues. While air freight revenues rose by 8.2% in 2020, this did not compensate for the loss of passenger revenues. Airlines have adapted to the crisis thanks to government-backed loans and operational changes. Competition between airlines in France remained intense, with low-cost carriers such as EasyJet and Transavia expanding their presence. Prior to the crisis, the market had seen steady growth in air traffic, with the most dynamic passenger routes forecast to be Caribbean-Middle East and Central America-Middle East.

Despite a contraction in air travel, the sector began to diversify its offerings with multiple classes and ancillary services such as leasing partnerships, while pricing strategies became increasingly dynamic, adapting to fluctuations in demand and offering a range of ancillary services to improve airline profitability.

Dynamics of air travel demand

Demand for air transport is traditionally linked to the vicissitudes of the economic climate. Because of its link with the oscillating sectors of tourism and the exchange of high-value goods, the air transport market flourishes in times of economic prosperity and withers in times of financial recession. Before the pandemic upset the norm, the sector was enjoying healthy growth, with an annual growth rate of almost 3% for the passenger segment and around 5% for freight.

France, with its position as the world's leading tourist destination, saw its air transport market soar. However, the unforeseen turbulence of COVID-19 caused revenues to plummet, cutting the sector's previous record by 60% in 2020. Despite the resilience of airfreight, the scale of passenger revenue losses left a gaping hole, difficult to fill even with government parachutes and a growing debt that hovered around the 30% mark. The French market, though hard hit, particularly in the passenger division with sales plummeting by over 55%, managed to stay afloat. The freight segment fared relatively better, with a smaller but still significant reduction in sales of around 37%.

It should also be noted that the bulk of French air traffic is made up of international passengers, who accounted for almost 80% of the country's air travellers before the crisis. Looking at the specifics of demand, French airspace saw the greatest activity from Paris, with over 60% of air passengers. The beating heart of France's air traffic weighed heavily in favor of European destinations, which attracted around 65% of the country's air passengers, followed by the African continent, which attracted around 14%. Spain, the UK and Portugal were the most popular destinations, no doubt due to their dual appeal: business opportunities and tourist destinations. The profile of French air passengers gravitates towards the upper echelons of society's professional ladder, an expected trend given the importance attached to safety.

A look at the dominant carriers and emerging challengers

The air transport market is a vast and complex sector, comprising a range of airlines with varying business models and market strategies - from the historic giants to the agile low-cost challengers. Here, we take a look at the major players who have blazed a trail in the skies, and the emerging forces that are reshaping the industry's dynamics.

• Traditional titans: Air France KLM, a leading airline group that has long established its dominance, particularly in the French market. Thanks to its historic access to a wide range of domestic and international routes, Air France has firmly established itself as one of travelers' preferred airlines, holding a significant market share in passenger traffic. KLM complements this presence with its own robust network, particularly on the international market, making the group a formidable force in European skies.
  
  
• Low-cost pioneers: EasyJet and Ryanair. Unlike traditional carriers, low-cost airlines such as EasyJet and Ryanair have revolutionized air travel by offering affordable, no-frills services. Particularly on short-haul European routes, these airlines have succeeded in winning over budget-conscious business and leisure travellers. Thanks to efficient operations and competitive pricing, they have ushered in an era when air travel is more accessible than ever.
  
  
• Transavia: an innovative hybrid model. Transavia, the low-cost arm of the Air France KLM group, adds diversity to the market. By offering competitive prices while capitalizing on the operational efficiency of a larger airline, Transavia has created a hybrid model that attracts budget travelers without compromising network reach.
  
  
• Freight forerunners: FedEx Express and Cargolux. When it comes to air freight, FedEx Express is a leading integrator. With a global network, a fleet that includes both cargo and passenger aircraft, and extensive logistics capabilities, FedEx Express is a crucial player in international trade and logistics. Cargolux, with its all-cargo fleet, specializes in the transport of goods and has carved out a niche in handling cargo that requires air transport due to its high value or time-sensitivity.
  
  
• Consolidators and specialists : TUI AG and Tunisair. On the charter front, companies such as TUI AG and Tunisair have established themselves by meeting the specific needs of leisure travelers, often in coordination with tour operators to provide specialized services.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 25/06/2021

Summary and extracts

List of charts

• Evolution du chiffre d'affaires du marché du transport aérien, par segment
• Evolution de la croissance du chiffre d'affaires du marché du transport aérien par continent
• Croissance estimée du trafic aérien dans certaines régions du monde, par segment
• Evolution du chiffre d'affaires du marché du transport aérien, par segment
• Répartition du trafic aérien par nature des flux et destinations
• Répartition du trafic aérien, par type d'axe
• Répartition du trafic aérien France - international par continent
• Liaisons France-international les plus fréquentées
• Liaisons radiales les plus fréquentées (ville à ville)
• Catégorie socio-professionnelle des passagers aériens
• Motif du voyage des passagers aériens
• Fréquence de voyage en avion, selon la raison
• Mode d'achat des billets d'avions
• Répartition des destination des passagers par rapport à leur destination finale
• Répartition du fret aérien France - International
• Evolution du volume de fret aérien
• Evolution du volume de fret aérien
• Répartition du trafic aérien de passagers par compagnie aérienne
• Répartition du trafic aérien de fret par compagnie aérienne
• Evolution de l'activité du transport ferroviaire et aérien de passagers
• Evolution de l'activité du transport ferroviaire et aérien de fret
• Répartition du nombre de passagers par aéroport
• Répartition du trafic de fret aérien par aéroport
• Evolution des prix moyens des billets d'avion, selon le mois et la destination
• Part des vols proposés étant les moins chers par rapport aux autres compagnies aériennes
• Part du carburant dans les dépenses des compagnies aériennes
• Part du carburant dans les dépenses et marge de résultat d'exploitation des compagnies aériennes
• Evolution du prix du baril de brent
• Les compagnies aériennes préférées des Français
• Comparaison du niveau d'appréciation de 4 compagnies aériennes en fonction de la région des répondants