Airlines are companies that offer air transport services for passengers and freight using aircraft. They may form partnerships with other airlines through codeshare agreements, where they jointly offer and operate flights. Airlines are typically recognized by an air operating certificate or license from a government aviation body. They can operate on a scheduled or charter basis.
The German airship company DELAG, the first airline, was founded on November 16, 1909.
The first scheduled fixed-wing airline flight took place on January 1, 1914, between St. Petersburg and Tampa, Florida, operated by the St. Petersburg–Tampa Airboat Line and piloted by Tony Jannus.
Aircraft Transport and Travel, an ancestor of British Airways, was founded in 1916 by George Holt Thomas.
Deutsche Luft-Reederei was founded in 1917.
Société des lignes Latécoère, later known as Aéropostale, began its first service to Spain in late 1918.
The US Postal Service started experimenting with air mail delivery in 1918, initially utilizing Curtiss Jenny aircraft, and marking the beginning of a transition towards air-based mail transportation.
Chalk's International Airlines commenced operations between Miami and Bimini, Bahamas, in February 1919, later claiming to be the oldest continuously operating airline in the US until its closure in 2008.
Deutsche Luft-Reederei, the first German airline to use heavier-than-air aircraft, started operations in February 1919.
Aircraft Transport and Travel conducted a proving flight across the English Channel on July 15, 1919, from RAF Hendon to Paris - Le Bourget Airport.
Aircraft Transport and Travel launched the world's first regular international service on August 25, 1919, between Hounslow Heath Aerodrome and Le Bourget Airport in Paris.
Aircraft Transport and Travel secured the first British civil airmail contract in November 1919, operating between Hawkinge and Cologne.
Other early French airlines were established in 1919, including Société Générale des Transports Aériens and Compagnie des Messageries Aériennes.
KLM (Netherlands) and Avianca (Colombia), two of the oldest non-airship airlines still operating, were founded in 1919.
Handley Page Transport was established in 1919 and operated a London-Paris passenger service.
In 1920, the six Royal Air Force Airco DH.9A aircraft lent to Aircraft Transport and Travel for the airmail service were returned.
KLM, the oldest continuously operating airline, made its first flight in 1920 from Croydon Airport, London to Amsterdam.
Qantas, the Australian airline, was founded in 1920.
KLM started scheduled services in 1921.
The Chief Administration of the Civil Air Fleet was established in the Soviet Union in 1921.
The D.L.R. network expanded to over 3000 km, including destinations in the Netherlands, Scandinavia, and the Baltic Republics by 1921.
Air Union was formed on January 1, 1923, through the merger of two French airlines.
Domestic air service began in the Soviet Union when Dobrolyot started operations on July 15, 1923, between Moscow and Nizhni Novgorod.
Aero O/Y (now Finnair) was founded in Helsinki on 12th September 1923.
Aeroflot, the Russian airline, was founded in 1923.
Aero O/Y's first flight took place on March 20, 1924, between Helsinki and Tallinn.
The Handley Page W8f City of Washington, the first airliner ordered by Imperial Airways, was delivered on November 3, 1924.
Junkers Luftverkehr, a division of the aircraft manufacturer Junkers, became a separate company in 1924.
Imperial Airways was formed in 1924 through the merger of four British airlines.
"The Lost World" became the first film shown on a scheduled airliner flight in April 1925, on the London-Paris route.
In 1925, the Ford Motor Company's introduction of the all-metal Ford Trimotor, with its 12-passenger capacity, marked a shift toward potentially profitable passenger air service.
Alan Cobham surveyed flight routes from the UK to Cape Town and Melbourne in 1926.
Deutsche Lufthansa was created in 1926 through the merger of two airlines, one of them being Junkers Luftverkehr.
Regular air services to Cairo and Basra commenced in 1927.
The air mail service to Morocco was bought out in 1927, renamed Aéropostale, and became a major international carrier.
The air service was extended to Karachi in 1929.
The Philippine Aerial Taxi Company (PATCO) was established in December 1930 by mining magnate Emmanuel N. Bachrach. It commenced commercial air service three weeks later, marking the beginning of Asia's first airline route.
In 1931, the Graf Zeppelin began offering regular passenger service between Germany and South America, operating approximately every two weeks until 1937.
Tata Airlines, later renamed Air India, was founded in October 1932 by J.R.D. Tata as a division of Tata Sons Ltd. J.R.D. Tata piloted the inaugural flight carrying air mail from Karachi to Bombay via Ahmedabad on October 15, 1932.
The London-Australia air service was inaugurated in 1932.
Since 1932 all operations had been carried under the name Aeroflot.
Air France was established on May 17, 1933, through the merger of Air Union and four other French airlines.
Aéropostale went bankrupt, was nationalized, and merged into Air France in 1933.
Passengers departed London for Hong Kong on March 14, 1936, following the establishment of a branch from Penang.
The Hindenburg airship started its passenger service in 1936, successfully crossing the Atlantic multiple times before its tragic crash in 1937.
In May 1937, the Hindenburg airship, after completing 36 successful transatlantic crossings, crashed in Lakehurst, New Jersey.
The death of Emmanuel N. Bachrach, the founder of PATCO, occurred in 1937. This event paved the way for PATCO's eventual merger with Philippine Airlines in 1941.
A weekly air service connecting Berlin and Kabul, Afghanistan, was established in 1938.
Deutsche Lufthansa's pioneering transoceanic airmail service, which began in 1934, ended in 1939 due to the start of World War II.
In 1939, beer magnate Andres R. Soriano acquired the majority share in PATCO from Bachrach's estate, following the advice of General Douglas MacArthur. This acquisition led to the merger with the newly formed Philippine Airlines.
Philippine Airlines (PAL) was officially founded on February 26, 1941. However, its operating license originated from the Philippine Aerial Taxi Company (PATCO), established in December 1930.
In March 1941, PATCO merged with Philippine Airlines (PAL), with PAL as the surviving entity. This merger solidified PAL's position as Asia's oldest airline still in operation.
On July 31, 1946, Philippine Airlines (PAL) made history with the first transpacific flight by an Asian airline. A chartered DC-4 carried 40 American servicemen from Manila to Oakland, California, with several stops along the way.
Following World War II and India's independence, Tata Airlines became a public limited company on July 29, 1946, under the name Air India. The Government of India acquired 49% of the airline and granted it flag carrier status for international operations as Air India International.
Cathay Pacific was founded in September 1946, marking the beginning of its journey as a major airline in the Asian region.
Orient Airways, which later became Pakistan International Airlines, was founded in October 1946, contributing to the growth of air travel in the region.
Cathay Pacific was one of the first airlines launched in Asia in 1946, alongside other carriers. The federal government granted the license to operate after reviewing the necessity at the national assembly.
Air Ceylon (later SriLankan Airlines) and Malayan Airways Limited (later Singapore and Malaysia Airlines) were both founded in 1947 as part of the post-war expansion of air travel.
El Al, the national airline of Israel, was founded in 1948.
Garuda Indonesia, the flag carrier of Indonesia, was founded in 1949.
Japan Airlines was established in 1951, playing a crucial role in the development of Japan's aviation industry.
Aeroflot became the world's first airline to operate sustained regular jet services in September 1956, utilizing the Tupolev Tu-104.
In October 1958, both British Overseas Airways Corporation (BOAC) and Pan Am launched transatlantic jet flights using the Comet 4 and Boeing 707 respectively, ushering in a new era of faster international travel.
Thai Airways International was founded in 1960 and became the flag carrier of Thailand.
As of 1963, Finnair held a notable safety record with no fatal or hull-loss accidents since that year.
The Concorde, a supersonic aircraft, took its first flight in 1969, paving the way for faster air travel and operating until 2003.
Airbus started producing its commercially successful line of airliners in 1972, focusing on increased passenger capacity, payload, and range.
After deregulation in 1978, US airlines underwent restructuring, with many becoming subsidiaries of management companies, impacting their financial control.
Following deregulation in 1978, major airlines used aggressive pricing strategies, such as loss leader pricing, to maintain dominance, impacting both industry revenue and service quality.
Following the 1978 deregulation, U.S. carriers experienced a period of financial instability, with 12 unprofitable years out of 31. However, from 2010, they achieved eight consecutive years of profit by adapting their strategies.
Since the 1978 Airline Deregulation Act in the U.S., over 200 airlines have merged, been acquired, or ceased operations. This consolidation trend is driven by the desire for greater efficiency and economies of scale, with international airline managers lobbying for more consolidation opportunities.
The 1978 deregulation of the US airline industry faced criticism, with figures like former American Airlines CEO Robert Crandall highlighting its negative impact on legacy carriers and their financial stability.
The deregulation of the US airline industry in 1978 lowered barriers for new airlines but coincided with an economic downturn, presenting challenges for both new and existing carriers.
Since 1980, the airline industry has struggled to earn back the cost of capital, even during profitable periods. The industry experiences cyclical financial performance, with periods of poor earnings followed by periods of improvement, although net profit margins remain low (2-3%).
Asiana Airlines, another prominent Asian carrier, was launched in 1988. Asiana Airlines later joined Star Alliance in 2003.
Between 1990 and 2006, greenhouse gas emissions from aviation in the EU increased by 87%, while terminal passengers in the UK increased from 100,000,000 to 250,000,000.
Since 1990, numerous US airlines, including major carriers like American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines, Pan Am, United Airlines, and US Airways, have filed for Chapter 11 bankruptcy.
The collapse of Pan Am in December 1991 highlighted the financial challenges faced by major airlines.
Analysis of the period from 1992 to 1996 revealed that other players in the air transport chain, such as airports, catering companies, and aircraft lessors, were significantly more profitable than airlines.
Analysis of the period from 1992 to 1996 revealed that other players in the air transport chain, such as airports, catering companies, and aircraft lessors, were significantly more profitable than airlines.
In 1999, Warren Buffett remarked that the cumulative profit of all U.S. airlines since the dawn of aviation was zero.
Between 1999 and the early 2000s, Southwest Airlines successfully utilized fuel hedging to maintain strong business profits. This practice involves using contractual tools to mitigate the risks of volatile fuel costs.
Between 2000 and 2005, US airlines experienced significant financial losses, totaling $30 billion. This period also saw wage cuts exceeding $15 billion and 100,000 layoffs.
Between 2000-2005, the rising cost of fuel became a major financial issue for airlines, impacting legacy carriers with older, less fuel-efficient aircraft more significantly. Fuel hedging became important to control costs during periods of increasing fuel prices.
Since 2000, advancements in technology, larger aircraft, and efficient operations have significantly reduced airline operating costs. This decrease has benefited customers due to increased competition and falling fares.
SkyTeam, a major airline alliance, was founded in 2000 with Korean Air as one of its four founding members.
From 2001 to 2006, domestic air transport in China grew annually at 15.5%, compared to a 3.7% global growth rate.
On December 31, 2001, Congress passed the Air Transportation Safety and System Stabilization Act (ATSSB) to address the airline industry's liquidity crisis following the September 11 attacks. The ATSSB provided financial aid to carriers to cover losses from the four-day federal shutdown and the attacks' impact.
Asiana Airlines joined the Star Alliance in 2003, further expanding its global reach and network.
Concorde operations ended in 2003, marking the end of commercial supersonic air travel.
KLM, one of the first airlines to form an alliance (with Northwest Airlines), merged with Air France in 2004. Both airlines subsequently joined the SkyTeam alliance.
Between 2000 and 2005, US airlines experienced significant financial losses, totaling $30 billion. This period also saw wage cuts exceeding $15 billion and 100,000 layoffs.
By 2005, rising fuel costs became a major financial issue for airlines, impacting legacy carriers with older, less fuel-efficient aircraft more significantly. Fuel hedging became important to control costs during periods of increasing fuel prices like the period of 2000-2005.
By 2005, the last piston-powered aircraft were as fuel-efficient as the average jet aircraft according to some reports.
Between 1990 and 2006, greenhouse gas emissions from aviation in the EU rose by 87%, coinciding with a significant increase in air travel. In China, domestic air transport grew by 15.5% annually from 2001 to 2006. European airlines transported 750 million passengers annually and handled 40% of Europe's merchandise value. Despite this growth, airlines prioritized fuel efficiency to lower costs.
Chalk's International Airlines, which began operations in 1919, ceased operations in 2008.
In 2008, rising oil prices significantly impacted the airline industry, causing difficulties for national airlines such as Italy's Alitalia.
After the 1978 deregulation and subsequent financial struggles, the U.S. airline industry rebounded in 2010, achieving eight consecutive years of profit through strategic adjustments like route optimization and capacity control.
In 2011, the Latin American air travel market experienced rapid growth, with industry estimates projecting over 2,000 new aircraft entering service in the region over the next five years.
As of 2013, several projects on electric aircraft were underway, with some fully operational.
In July 2015, the total weekly airline capacity was a basis for comparison for the growth seen in July 2016 when it increased by 6.9%.
By 2015, the three major airline alliances (Star Alliance, SkyTeam, and Oneworld) controlled over 60% of global commercial air traffic. These alliances coordinate passenger services, offer interline tickets, and engage in codesharing.
Following a considerable drop in fuel prices in 2015, consumers saw minimal savings due to industry consolidation and the dominance of four large firms in the US airline industry.
In July 2016, the total weekly airline capacity reached 181.1 billion available seat kilometers, a 6.9% increase compared to July 2015. Asia-Pacific accounted for the largest share of this capacity.
The air transport industry generated $704.4 billion in revenue in 2016, employed 10.2 million workers, and supported 65.5 million jobs and $2.7 trillion of economic activity, representing 3.6% of the global GDP.
In 2017, the global airline industry carried 4.1 billion passengers on 41.9 million scheduled flights, covering 7.75 trillion passenger kilometers. The industry generated $704.4 billion in revenue and supported 65.5 million jobs, contributing 3.6% to the global GDP.
The global airline industry generated $754 billion in revenue and $38.4 billion in profit in 2017, according to IATA.
In February 2018, a price comparison by rome2rio revealed Tigerair Australia and AirAsia X as the cheapest airlines, while Charterlines, Inc. and Buddha Air were the most expensive.
IATA projected a 10.7% increase in global airline industry revenue to $834 billion in 2018, but with a 12% decrease in profit to $33.8 billion due to rising fuel and labor costs.
In 2019, different airlines led in various categories: American Airlines Group (fleet size, passengers carried, revenue passenger mile), Delta Air Lines (revenue, assets, market capitalization), Lufthansa Group (employees), FedEx Express (freight tonne-kilometres), Turkish Airlines (countries served), and UPS Airlines and United Airlines (destinations served).