Titans of the aviation industry, the world’s largest airlines have been connecting billions of passengers across the globe for decades, allowing us to explore the world as never before. As total passenger traffic, expressed in Revenue Passenger Kilometers (RPK) and airlines’ total operating revenue provide the top-line snapshot of the industry’s size and impact, measuring airline size in terms of winged metal operating globally offers an insight into the competitive dynamics of the world’s aviation industry. 

This article will provide an overview of the world’s largest airlines, revealing their passenger traffic and total operating revenues, as well as offering insights into their organizational structures, fleet size and route networks.

First Let’s Look at the Numbers

The ‘big three’ airlines of the United States, American Airlines, Delta Air Lines and United Airlines, account for the lion’s share of the global market, each surpassing the $40 billion mark in operating revenue in 2020. The top ten global airlines ranked by total operating revenues are as follows:

  1. American Airlines – U.S. – $44 billion
  2. Delta Air Lines – U.S. – $41 billion
  3. United Airlines – U.S. – $41 billion
  4. Lufthansa Group – Germany – $31 billion
  5. China Southern Airlines – China – $27 billion
  6. Air France-KLM Group – France/Netherlands – $25 billion
  7. China Eastern Airlines – China – $24 billion
  8. International Airlines Group – U.K. – $23 billion
  9. Emirates – United Arab Emirates – $22 billion
  10. Southwest Airlines – U.S. – $20 billion

The Aviation Industry Outside the US

The US market accounts for a large share of the world’s aviation industry, but other countries have their own titans too. China has three major airlines, which together make up the world’s second largest aviation market; China Southern Airlines, China Eastern Airlines and Air China. In Europe, the major players are Lufthansa Group, Air France-KLM Group, IAG and Turkish Airlines. In terms of passenger numbers, Emirates, based in the UAE, is the fourth largest airline in the world.

Measuring With RPK

Looking at the industry through the lens of passenger passenger-kilometers (RPKs) provides us with another interesting perspective. The total RPK results are not significantly different from the total operating revenue figures, with American Airlines, Delta Air Lines, United Airlines, Lufthansa Group, China Southern Airlines and Air France-KLM Group all featuring in the top 10. The RPK list is as follows:

  1. American Airlines – U.S. -418.4 billion
  2. Delta Air Lines – U.S. -364.3 billion
  3. United Airlines – U.S. -288.5 billion
  4. Lufthansa Group – Germany -255.1 billion
  5. Air China – China -223.7 billion
  6. China Southern Airlines – China -219.5 billion
  7. China Eastern Airlines – China -194.5 billion
  8. Air France-KLM Group – France/Netherlands -183.8 billion
  9. Emirates – United Arab Emirates -156.6 billion
  10. International Airlines Group – U.K. -146.8 billion

Organisational Structure

The organisational structure of an airline affects how it functions and how it responds to external factors on the market. Of the biggest airlines, two of the top three in terms of RPK, Delta and United, follow a ‘legacy’ business model. This involves traditionally structured corporations that operate as independent entities.

In contrast, American Airlines is a member of the Oneworld alliance, a conglomerate of airlines which cooperate with one another to deliver their services across multiple routes and provide integrated membership and loyalty schemes.

The Lufthansa Group, based in Germany, is made up of a range of airlines, including Lufthansa, Swiss International and Eurowings. It operates using what has been termed a ‘multi-brand strategy’, deploying complementary brands in different sectors, giving them the flexibility to respond to different customer needs and to take advantage of new opportunities.

The remaining airlines in the top 10 RPK list are subsidiaries of much larger conglomerates. Air China is part of the larger Air China Group; China Southern Airlines and China Eastern Airlines are subsidiaries of the wider China National Aviation Corporation; Emirates is part of the much larger Dubai-based Emirates Group, which for example also consists of cargo companies and other entities associated with the airline business. In the European market, Air France-KLM and IAG are extensive international conglomerates, formed through a series of mergers and acquisitions, that have increased their size and reach through the formation of multiple joint ventures.

Fleets and Route Size

The big three US airlines have by far the largest and most modern fleets of any of the Titans. American Airline’s fleet of 973 aircraft is the largest, with Delta Air Lines and United Airlines in second and third place respectively, each with less than 900 aircraft.

The European titans operate with slightly smaller fleets, with Lufthansa Group’s 781 aircraft, Air France-KLM’s 695 and IAG’s 660 aircraft rounding out the top six. The Middle Eastern behemoth Emirates operates a slightly smaller fleet of 271 aircraft.

The size of an airline’s route network is also a strong indicator of its size, scope and reach. Unsurprisingly, the big three US airlines also have the world’s largest route networks. American Airlines operates an impressive network of direct routes to 350 destinations in 57 countries, while United Airlines and Delta Air Lines both operate networks of 319 and 325 destinations respectively.

The Lufthansa Group’s network is large by European standards, offering routes to 204 destinations in 86 countries. Air France-KLM utilizes a fleet of 214 airplanes to serve 201 destinations in 104 countries, while Turkish Airlines operates flights to 126 countries and IAG’s three airlines reach 124 countries. Finally, Emirates employs 207 aircraft to serve 157 destinations in 91 countries worldwide.

The aviation industry is dominated by a handful of titans, each controlling a large portion of the global market. American Airlines, Delta Air Lines and United Airlines, account for the lion’s share of the global market in total operating revenues and RPKs. China’s three major airlines and European carriers Lufthansa Group, Air France-KLM Group, IAG and Turkish Airlines also rival the US in terms of scope, size and reach.

These titans of the aviation industry have mastered the art of connecting people across the globe and make up the backbone of the global transport system, without which our world would not be the same. It will be interesting to see how their expansive networks and tech-savvy fleet continues to adapt and expand in the coming years.