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The European aviation landscape is shaped differently than in the United States, with a greater number of legacy carriers dominating the market. While Delta Air Lines, United Airlines, and American Airlines head the industry in the U.S., Europe's commercial aviation scene is defined by conglomerates maintaining separate airline brands under a larger corporate umbrella. This model allows these carriers to collaborate without altering familiar branding.
Economic uncertainty has created headwinds for the aviation industry. The possibility of a trade war threatening to increase Boeing aircraft prices in the European market is prompting airlines to project flat growth. The lingering fears of a recession are affecting business travel demand, particularly impacting airlines like Air France and British Airways, which rely considerably on revenue from corporate travelers. Similarly, expected lower consumer spending has carriers wary about reduced demand from premium leisure travelers.
Among the major players in the European market are Lufthansa Group, Air France-KLM, and the International Airlines Group (IAG). Lufthansa Group focuses on Northern Europe but has recently expanded into Southern Europe with the acquisition of ITA Airways. Despite being built around Air France and KLM, the Air France-KLM conglomerate has subsidiaries and global reach through the SkyTeam alliance. Meanwhile, IAG includes British Airways, Aer Lingus, Iberia, and low-cost carriers LEVEL and Vueling.
