Steadier Growth Projected by SalesForekast™ for Low-Cost Airlines | Industry Comparison

The following report looks at the projected sales forecast for low-cost airlines verses the national carriers. Projections for Southwest & Spirit Airlines, as well as Delta & American Airlines were created by SalesForekast™


This is a highly competitive market where the advent of low-cost airlines expanded the penetration of air travel.

Globally, the passenger miles have been growing at 5.5% over the last 10 years (3% in North America).

The market demographics have been changing slowly with two segments driving low cost airline growth: millennials and a new target group specifically looking for low frills tickets. 

Further, start-up style air carriers are able to compete against national firms by challenging the old pricing strategies. Low cost carriers sell no-frill tickets on shorter routes in order to gain market share. Younger consumers are drawn to the low price knowing that their ticket may include no more than just the seat.

SalesForekast™ analysis suggests that major airlines will have greater revenue uncertainty as the range of high, low, and best-fit scenarios are spread much wider. In contrast, low-cost airlines project a much more steady and optimistic growth scenario. 

A comparison of macro-economic indicators, between national carriers and low-cost airlines, reveals a significant difference regarding the economy's primary effects on future company growth.

National carriers tend to be affected more by employment indicators, specifically manufacturing employment trends.

The low-cost airlines, in contrast, tend to be more influenced by GDP (Gross Domestic Product) and personal consumption.

This reflects the use of national carriers by business travelers, where convenience is more valuable. Parts of the industry are shifting to further accommodate younger generations, and older strategies used by national carrier must be reevaluated. 

For the specific airlines:


Delta sales are projected to decline when correlated against the current forecast for macroeconomic trends. 

To read the full report on Delta airlines, click here.

United Airlines

SalesForekast™ is unable to graph United Airlines due to no macroeconomic correlations. This suggests that other factors have a greater influence on the firm's revenue, such as competition.


Southwest Airlines, based on projections from SalesForekast™, will see an increase in sales revenue compared to their historical data.  The projections suggest that job growth, including governmental employment, will likely determine future sales. 

To read the full report on Southwest Airlines, click here.


Spirit Airlines is likely to experience revenue growth based on future projections from SalesForekast. After correlation with macroeconomic indicators, Spirit is projected to perform better than their historical data suggests by the best-fit line. 

To read the full report on Spirit Airlines, click here.

What does this mean for investors? 

Although it is impossible to know the future, SalesForekast™ projections suggest that low-cost airlines will perform better from a top line growth perspective than the larger national carriers over the next 3 years. Growth from budget airlines has challenged these national carriers to adopt new strategies to remain relevant. Both national airlines and budget carriers are affected slightly different from macroeconomic indicators implying the previously mentioned shift in industry demands. It remains to be seen whether these projected trends will come to fruition, but SalesForekast™ offers a potential glimpse into future based on previous trends.


About SalesForekast 

SalesForekast™ correlates historical sales or market capitalization data with over 30 selected macroeconomic indicators to project data for future quarters based on the forecasts for the macroeconomic indicators that drive the company’s sales or market cap.

Guilford Group Releases Software that Shows How The Market Impacts Your Sales

INDIANAPOLIS — Guilford Group, an Indianapolis-based software company, announced the launch of its new software, SalesForekast™. For the first time, companies can utilize a fresh new set of online analytical tools to support a forecasting process that has historically been expensive and cumbersome.

SalesForekast™ distinguishes itself from the competition by allowing companies to simply and affordably correlate their sales to macroeconomic indicators. Therefore, companies can gain an additional perspective on future sales based on trends that the economy is following.

Using SalesForekast™, private companies gain a competitive edge by understanding how their performance can be affected by broad economic and market trends.

Similarly, private equity investors can confirm prior to investing whether market trends will provide a tailwind or headwind in the near future. This allows investors to screen opportunities efficiently while reducing the risk of poor investments.

SalesForekast™ can be used effectively to look at forecasts for sales and market capitalization for public companies or their divisions. It reduces the time and expense typically required to perform market analysis and trend correlation at this level.

SalesForekast™ also enables access to Fortune 100 level forecasting for small and mid-sized companies with large customer bases.

“The sales forecasting and economic correlation tools available through this software gave me another view as compared to the internal ‘bottom up’ forecast. This equipped me with the information I needed to convince my board of the growth potential of the company.“ - Bill Midgette

“I have used this approach with a number of companies that I have invested in and found that there was an opportunity to provide a software package that would be helpful to companies and investors in order to improve their forecasting capabilities. The correlation with macroeconomic indicators provides another view of the world – at a very reasonable cost.” - Rahul Kapur

For a limited time, SalesForekast™ is offering a free 14-day trial that includes full access to their software.

For more information on SalesForekast™, watch the video overview or visit www.salesforekast.com.

About Guilford Group

Guilford Group is a multi-discipline information technology consulting firm based in Carmel, Indiana. We specialize in IT project management; enterprise application development with particular focus on mobile development, web applications and data analytics; IT staffing; system integrations; as well as maintenance, support and upgrading IT systems. Guilford Group has a reputation in the community for our integrity, accountability, personalized attention and commitment to excellence. Our forward-thinking and client-focused service sets Guilford Group apart from other IT Consulting firms. We can be highly competitive by leveraging our dedicated outsourcing capabilities.