23 Jul, 2026
According to Straits Research, the global full-service carrier market size was valued at $323.3 billion in 2025 and is projected to grow from $336.4 billion in 2026 to $467.7 billion by 2034, at a CAGR of 4.06% during the forecast period 2026–2034.
Full-service carriers (FSCs), or legacy airlines or full-service airlines, are established air carriers that offer supplementary services to passengers without imposing additional charges. This stands in contrast to low-cost carriers (LCCs), which impose additional charges for all additional services. Based on the airline and flight duration, FSCs typically provide amenities such as onboard catering, baggage allowance, in-flight entertainment, seat assignment, and other comforts (blankets, travel packages, etc.). In addition, membership in loyalty programs, access to airport premium facilities, connecting flights, and multi-class service are provided by the majority of FSCs.
Air passenger traffic has increased significantly in the airline industry due to rising per capita income, expanding urbanization, and declining overall air travel costs. Air passenger traffic increased incrementally (comparing 2021 to 2020), primarily due to the effective COVID-19 vaccination programs in several regions, which assisted governments in easing air travel regulations. In comparison to 2019, passenger demand (revenue passenger kilometers or RPKs) decreased by 58.4% in 2021, per the International Air Transport Association (IATA). This decline depicted an enhancement compared to 2020 when RPKs for the entire year decreased by 65.8% compared to 2019.
Furthermore, total traffic in July 2023 increased by 26.2%, as measured in revenue passenger kilometers (RPKs), compared to July 2022. On a global scope, traffic has returned to pre-COVID levels by 95.6%. Globally, passenger demand will return to pre-COVID-19 levels in several significant aviation markets by 2024. Consequently, the increase in air passenger volume is anticipated to propel the market for full-service carriers throughout the forecast period.
The expansion of route networks and the ability to accommodate a wide range of destinations can serve as a substantial impetus for full-service carriers. The capacity to establish an international footprint and offer convenient connectivity possesses the capacity to appeal to a diverse clientele. For instance, Vistara, a renowned full-service airline in India, initiated non-stop flights between Pune and Singapore in December 2022. According to the statement issued by the Gurugram-based company, the airline plans to operate flights on this particular route on a four-times-per-week basis, employing its A321neo aircraft.
Similarly, Vistara increased daily service frequencies from Delhi to Frankfurt and Paris due to the addition of a third Boeing 787-9 aircraft in November 2022. The airline has declared its intention to operate six flights weekly on the route connecting Delhi and Frankfurt while increasing the frequency to five flights per week on the route connecting Delhi and Paris. Thus, establishing new international routes will generate market opportunities for full-service carriers globally.
North America is the most significant global market shareholder and is expected to expand substantially during the forecast period. The air traffic in the North American region is continuously surging. For instance, IATA reported that although North American airlines' full-year passenger traffic decreased by 65.6% compared to 2019, the region still held the world's largest proportion of passenger traffic (RPK), accounting for approximately 32.6% of global RPKs. Similarly, according to the US Bureau of Transportation Statistics, the airlines in the U.S. carried 674 million passengers in 2021, which increased by 82.5% compared to 2020 (369 million passengers).
In the Asia-Pacific region, air travel has expanded dramatically due to an increase in airlines and passengers. For instance, according to data issued by the Directorate General of Civil Aviation, domestic air passengers in India significantly increased by 46.5% year-on-year in September 2022, reaching 103.55 lakh passengers. This figure represents a notable surge compared to the 70.66 lakh passengers recorded during the same period in the previous year. According to the civil aviation regulator, the number of passengers transported by domestic airlines increased from 531.11 lakh in the corresponding period of the previous year to 874.24 lakh during January-September 2022, indicating a significant yearly growth rate of 64.61%. This is expected to augment market expansion.
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