Air Transport Services are a cornerstone of the United States economy, acting as a significant engine for economic activity and employment. Commercial aviation alone contributes a substantial 5% to the U.S. Gross Domestic Product (GDP) and provides jobs for over 10 million American workers. As the world’s largest domestic market for both air passengers and freight, the U.S. aviation sector facilitates the daily movement of over 2.4 million passengers and an astounding 58,000 tons of cargo. In 2018, the total value of goods traded via air transport to and from the U.S. reached a staggering $1 trillion, highlighting the critical role of efficient air services in international commerce. This sector is experiencing consistent growth, with both passenger and cargo traffic expanding by 5% in 2018 and projections indicating continued growth trends. Furthermore, air transport is a key enabler of the tourism sector, the largest service industry in the U.S., and supports the smooth operation of just-in-time supply chains, fostering new investment opportunities across various industries.
Open Skies Policy: Fostering Global Air Travel Growth
For over 25 years, the United States has championed an “Open Skies” international aviation policy aimed at expanding global air transport markets. These bilateral and multilateral agreements are designed to eliminate government restrictions on international air travel. This includes limitations on the number of airlines operating between countries, the routes they can serve, pricing strategies, and aircraft types utilized. The Open Skies framework also promotes collaboration between U.S. and international airlines and ensures efficient operations for U.S. cargo and express delivery services. This policy encompasses both passenger and cargo aviation, covering scheduled and charter flight operations.
The success of the U.S. Open Skies policy is evident in its widespread adoption, with agreements established with over 125 partners across all continents and levels of economic development. In 2018, approximately 244 million passengers traveled between the U.S. and international destinations on both U.S. and foreign airlines, representing an estimated annual increase of 5.3%. Passenger traffic growth was observed across all international regions, with transatlantic routes leading the way with a 7.1% increase. This demonstrates the significant positive impact of Open Skies on facilitating and growing international air transport services.
Recent Trends in U.S. Air Passenger and Cargo Sectors
Air transport services are a significant contributor to the overall U.S. trade balance in both goods and services. Sales of airline tickets by U.S. carriers to international travelers are classified as U.S. service exports. Similarly, ground handling services provided at U.S. airports for foreign airlines also fall under service exports. Conversely, the transportation of U.S. goods on foreign aircraft for export purposes is considered a service import.
Alt text: Quarterly chart illustrating U.S. air transport imports, showcasing trends in the import of air transport services into the United States over a quarterly period.
U.S. air passenger traffic reached a milestone in 2018, exceeding 1 billion passenger boardings for the first time, and continued its upward trajectory into 2019. While both U.S. and foreign airlines participate in the U.S. international travel market, domestic air travel within the U.S. is exclusively served by U.S. airlines. The sustained growth experienced in the decade following the 2009 Great Recession was initially projected to extend into 2020 and beyond. The initial months of 2020 aligned with this forecast; however, the global landscape shifted dramatically. Industry projections now indicate that a return to 2019 passenger traffic levels is uncertain and, optimistically, not anticipated before 2023-24. This highlights the significant impact of recent global events on the air passenger transport sector.
Alt text: Chart depicting total passengers transported by U.S. and foreign airlines across all U.S. airports, visualizing the volume of air passenger traffic handled by both domestic and international carriers in the United States.
International air cargo demand has experienced fluctuations over the past decade, influenced by various economic factors. The total tonnage of cargo carried provides only a partial view of the air cargo sector. Ocean shipping, and to some extent rail and trucking for cross-border trade, offer significantly lower costs compared to air freight. This cost differential often leads shippers to prioritize these modes over air transport. Furthermore, the increasing adoption of less time-sensitive “just-in-time” delivery models in manufacturing impacts air cargo demand. Air cargo is typically characterized by lightweight, high-value goods, such as flowers or electronics, while heavier commodities and machinery are predominantly transported via sea, rail, or road. Despite representing a small percentage of overall trade by tonnage, air cargo accounts for over 30% of trade value, underscoring its importance in the movement of high-value goods. The year 2020 witnessed unprecedented disruptions in the air cargo market due to the near-complete halt of international passenger flights. Passenger flights traditionally contribute approximately half of the total air cargo capacity through the utilization of aircraft belly space. Initially, trade volumes experienced a sharp decline, followed by a surge in demand for healthcare supplies and goods ordered through e-commerce platforms. The air cargo market is anticipated to remain volatile and potentially unstable for the foreseeable future, requiring adaptability and resilience from air transport service providers.
Alt text: Graph showing international cargo carried by U.S. airlines, illustrating trends and volumes of international air freight transported by US-based air carriers.
For detailed data related to the charts presented, please refer to the [Air Transport Services Trade Data]([URL to data – if available on worldtransport.net or similar resource, otherwise link to original source if appropriate]).
Resources and Further Information
For further information on air transport services and related trade matters, please contact:
Alexandra Duffy
Air Transport Services
[email protected]
202.669.0862 (This contact information may be removed or adapted based on worldtransport.net’s style and purpose)
