The number of scheduled airlines in the US has been slowly declining over the years, despite total passenger miles flown steadily going up. Compared to 20 years ago when the US had 87 scheduled carriers, that figure now stands at 63. 18 US carriers are considered major carriers, with a further 45 airlines making up the numbers.
18 major carriers in the US
To be categorized as a 'major carrier' by the US Bureau of Transportation, airlines must be making revenues exceeding $1 billion annually. Currently, 18 airlines in the US meet this criterion.
The number of major US carriers was at its peak between 2006 to 2010, fluctuating between 21 to 23. Now down to 18, the ten largest US carriers account for over 90% of its domestic market. Just four of these airlines control over 80% of that market. The biggest US carrier, American Airlines, alone holds over 22% of the whole US market.
The top five US airlines by operating revenues are:
- American Airlines
- Delta Air Lines
- United Airlines
- Southwest Airlines
- Alaska Airlines
Revenues understandably took a hit due to the COVID pandemic. Compared to 2019, when total US airline operating revenues stood at $248 billion, this figure dropped to just $130.8 billion in 2020.
American Airlines, which holds the honor of being the world's largest airline in 2021, reported net losses of around $9.5 billion over 2020 due to the COVID pandemic. Including Delta's $12.4 billion and United's $7.1 billion net losses, the six biggest US carriers (including JetBlue) posted combined net losses of $35 billion for 2020.
With such a devastating year for aviation, it is a minor miracle that the number of official 'major carriers' in the US remained at 18 by the end of 2020. Since 2015, the figure has stayed at 18, barring 2016 and 2018, when it dropped to 17.
45 scheduled other carriers
According to ch-aviation, there are 63 scheduled carriers in the US, 45 of which are not classed as major carriers. Compared to major US airlines, the number of smaller airlines in the country has been in significant decline.
In 1995 there were 85 scheduled smaller carriers, more than the total number of scheduled US carriers today. This figure had dropped to 68 by 2005 and dropped to just 45 by 2015, with a series of mergers and market consolidation by major carriers spelling the end for many smaller airlines.
Why are there now fewer airlines?
A wide range of factors has led to the realities of the US aviation landscape today, where a small number of airlines control the vast majority of the market. Increased fuel prices, expensive aircraft costs and maintenance, and advantageous mega-mergers have made it difficult for the smaller airlines to get a look in.
The COVID-era has made things even worse, with airlines hit by a sudden drop in demand. In 2020, a total of 40 airlines collapsed across the globe. While 2021 saw the aviation industry rebound somewhat, many more carriers didn't make it through the year.
What are your thoughts on the evolution of the US aviation landscape over the years? Which US carrier is your favorite? Let us know your insights in the comments.