PESTLE Analysis of Airline Industry. The airlines employ aircraft to offer transport services for freight and traveling passengers. Many airline companies operate their business with government-issued licenses and certificates from the aviation department. Some of the main types of airlines are as follows;
- Regional Airlines
- National airlines
- International Airlines
According to an estimate, the collective annual revenue of the airlines industry in the US was 206.3 billion dollars in 2022. It has dropped significantly in recent years due to the pandemic crisis.
Some of the top world airline companies are as follows;
- Delta Airlines
- United Airlines
- American Airlines
- China Southern Airlines
- Southwest Airlines
- Emirates Airlines
Today, we’ll discuss pestle analysis of airline industry. It would focus on external political, economic, social, technological, legal, and environmental factors that impact the airline industry. Here’s the pestle analysis of airline industry as follows;
Political Factors Impacting Airline Industry
Some of the main political factors in the pestle analysis of Airline Industry are as follows;
Airlines and the aviation industry has got a lot of risks attached to them, and they may cause massive accidents, deaths, and irreparable damage. In order to make sure the safety and security of passengers and travelers, different governments have established strict rules and regulations for the airline industry. The aviation industry has got no other choice but to comply with the regulations.
War, political conflicts, and invasions may badly impact the business and the aviation industry. That’s why it is significant that the airline industry should carefully follow the air routes and avoid prohibited routes. Crossing the boundaries would put the safety of passengers and the company’s business in dire jeopardy.
Economical Factors Impacting Airline Industry
Some of the main economical factors in the pestle analysis of Airline Industry are as follows;
The country’s economic condition and global economic recession badly impact the growth of aviation. For instance, when the unemployment rate is high and people have limited purchasing power, the sale of the business and economy-class tickets would decline. Limited sales would decline the profitability and revenue of the company.
High Fuel Prices
Internal political conflicts and trade issues among the world’s powers have increased fuel prices to a great extent. Increment in fuel prices pushed the company to increase the ticket price. Now, ordinary customers are avoiding air travel and preferring alternative methods of transport.
Social Factors Impacting Airline Industry
Some of the main social factors in the pestle analysis of Airline Industry are as follows;
The consumer trends are shifting towards a shared economy, less owned things, and renting out services. Nowadays, customers want to buy tickets from those aviation companies that are charging limited fares. The advanced in technology and the usage of online meeting tools like Zoom Meeting and Skype Calling have decreased the volume of traveling for business meetings.
Technological Factors Impacting Airline Industry
Some of the main technological factors in the pestle analysis of Airline Industry are as follows;
The usage of technology has made various processes efficient. Nowadays, customers confirm their tickets online and perform check-in and check-out on their handheld devices. It allows them to avoid waiting in lines for their turn or visiting the office for ticket purchasing.
Social Media Marketing
Many aviation companies run their marketing and promotional campaigns on social media platforms to attract the attention of new customers to buy their tickets. They highlight the key features like safety, comfort level, and luxury of their airlines to make air travel much more comfortable.
Legal Factors Impacting Airline Industry
Some of the main legal factors in the pestle analysis of Airline Industry are as follows;
Different governments and their legal institutions have developed various laws and regulations for the safety of travelers and passengers. The objectives of aviation laws are;
- Making sure air travel safe
- Offering high-quality services
- Avoiding air crashes and other types of damages
- Ensuring airlines treat their passengers fairly
Environmental Factors Impacting Airline Industry
Some of the main environmental factors in the pestle analysis of Airline Industry are as follows;
The interest of the consumer market has shifted towards fuel-efficient technology and employing nature-friendly practices. That’s why it poses a great challenge to airlines and the aviation industry to launch green fly projects and reduce the consumption of fuel. However, there are various parties responsible for making the carbon footprint including the passengers and aviation companies.
Conclusion: PESTLE Analysis of Airline Industry
After an in-depth study of pestle analysis of airline industry; we have realized aviation industry is highly significant for the growth of a country’s economy. If you are learning about the impact of external environmental factors, then you should keep in mind the abovementioned factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.