NAICS 481111 Quarterly Industry Report
Scheduled Passenger Air Transportation
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 481111Sector: 48Updated: Q1 2026
About This Report
This NAICS 481111 industry report integrates data from the U.S. Census Bureau[5] Service Annual Survey, Bureau of Labor Statistics[6] employment and wage data for air transportation workers, and Small Business Administration[7] size standard tables. Fair Market Value researchers supplement these federal sources with Department of Transportation airline traffic and financial reporting data to deliver quarterly updates. Each NAICS 481111 report revision captures passenger volumes, employment trends, and competitive dynamics across the scheduled passenger air transportation sector.
Industry Snapshot
Key metrics for the scheduled passenger air transportation industry.
Industry Definition & Overview
Scheduled Passenger Air Transportation (NAICS 481111) encompasses establishments primarily engaged in providing air transportation of passengers, or passengers and freight, over regular routes and on regular schedules. Major domestic carriers like Delta, United, American, and Southwest operate hub-and-spoke and point-to-point networks serving hundreds of city pairs. Regional airlines operating under contract with major carriers, ultra-low-cost carriers, and commuter airlines serving smaller markets also fall within this classification.
The U.S. Census Bureau[5] separates scheduled passenger airlines from scheduled freight-only carriers (481112) and from nonscheduled charter operations (481211). Revenue comes primarily from ticket sales, with ancillary fees for baggage, seat selection, priority boarding, and onboard purchases adding significant supplemental income. Belly cargo carried in the lower holds of passenger aircraft generates additional freight revenue for carriers operating wide-body equipment on domestic and international routes.
Labor costs represent the single largest expense category, with pilot compensation, flight attendant wages, mechanics, and ground crew salaries consuming a substantial share of operating revenue. Fuel expenses fluctuate with crude oil prices and create earnings volatility that airlines manage through hedging programs and fuel surcharges. Airport gate access, landing fees, and terminal lease agreements shape network planning decisions. Consolidation has reduced the number of major carriers, and codeshare agreements between domestic and international airlines extend network reach without requiring additional aircraft investment from any single operator in the alliance structure.
What's Included in This Industry
- Operating scheduled domestic passenger airline services on fixed routes and timetables
- Providing scheduled international passenger air transportation between countries
- Running regional airline operations under contract with major network carriers
- Operating ultra-low-cost carrier services on scheduled domestic routes
- Providing commuter airline service connecting smaller airports to hub cities
- Transporting belly cargo freight on scheduled passenger aircraft flights
- Selling ancillary travel products including baggage fees, seat upgrades, and lounge access
- Operating codeshare and interline partnerships with other scheduled carriers
- Providing scheduled passenger service on island-hopping and short-haul regional routes
- Running frequent flyer loyalty programs tied to scheduled airline ticket purchases
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Air Transportation | 481 |
| Industry Group | Scheduled Air Transportation | 4811 |
| NAICS Industry | Scheduled Air Transportation | 48111 |
| National Industry | Scheduled Passenger Air Transportation | 481111 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 481112 | Scheduled Freight Air Transportation | Scheduled freight air carriers operate cargo-only flights on regular routes, while passenger airlines carry belly cargo alongside passenger operations |
| 481211 | Nonscheduled Chartered Passenger Air Transportation | Nonscheduled charter passenger carriers provide on-demand air transportation without fixed routes or timetables, serving different market segments than scheduled airlines |
| 488111 | Air Traffic Control | Air traffic control services manage the airspace and flight paths that scheduled passenger airlines use for safe and orderly operations |
| 488119 | Other Airport Operations | Other airport operations including terminal management, ground handling, and fueling services support scheduled airline passenger operations at airports |
| 336411 | Aircraft Manufacturing | Aircraft manufacturing produces the commercial jets and regional aircraft that scheduled passenger airlines purchase or lease for fleet operations |
| 561510 | Travel Agencies | Travel agencies sell airline tickets and travel packages that generate a portion of scheduled carrier passenger bookings and revenue |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 12.3% | 220 |
| 2 | Florida | 9.7% | 173 |
| 3 | New York | 7.6% | 135 |
| 4 | Texas | 7.0% | 124 |
| 5 | Illinois | 4.2% | 74 |
| 6 | Alaska | 3.9% | 69 |
| 7 | Virginia | 3.3% | 59 |
| 8 | Washington | 3.2% | 57 |
| 9 | Pennsylvania | 3.0% | 53 |
| 10 | Massachusetts | 2.7% | 48 |
% Of Establishments
0%
12%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
64
Total SBA Loans
$88.4M
Total Loan Volume
$1.4M
Average Loan Size
12 yrs
Average Loan Term
10.06%
Average Interest Rate
1,056
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The Small Business Administration[8] classifies businesses under NAICS 481111 as small if they employ no more than 1,500 employees. Regional carriers, commuter airlines, and small scheduled operators below this threshold qualify for SBA small business programs. SBA 7(a) loans[9] can support working capital, equipment financing, and operational expansion for qualifying carriers. The SBA 504 program[10] provides long-term fixed-rate financing for major capital investments including maintenance facilities and terminal infrastructure for small scheduled airlines.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Alaska Growth Capital BIDCO, Inc. | 8 | $34.9M | $4.4M |
| 2 | FinWise Bank | 8 | $26.0M | $3.3M |
| 3 | Newtek Bank, National Association | 8 | $16.0M | $2.0M |
| 4 | Northeast Bank | 24 | $4.4M | $183K |
| 5 | Farmers & Merchants Bank of Long Beach | 8 | $4.0M | $500K |
Frequently Asked Questions
Common questions about this industry.
What businesses are classified under NAICS 481111?
NAICS 481111 covers airlines operating scheduled passenger flights on regular routes and timetables. Major domestic carriers, regional airlines, commuter operators, and ultra-low-cost carriers all qualify. The U.S. Census Bureau[5] provides the official classification.
How is NAICS 481111 different from charter airlines?
Scheduled airlines (481111) fly fixed routes on published timetables, while charter carriers (481211) operate on demand without regular schedules. The Census Bureau[11] separates air transportation by whether services follow regular schedules or respond to individual booking requests.
What is the SBA size standard for scheduled airlines?
The SBA sets the size standard at 1,500 employees for NAICS 481111. Regional and commuter carriers often fall below this threshold. Current standards appear in the SBA table of size standards[7].
Which NAICS codes relate most closely to 481111?
Key related codes include 481112 for scheduled freight airlines, 481211 for charter carriers, 488111 for air traffic control, 488119 for airport operations, and 336411 for aircraft manufacturing. Each supports the scheduled airline industry directly.
What industries interact with scheduled passenger airlines?
Aircraft manufacturers (336411) supply fleet equipment, airport operators (488119) provide ground services, travel agencies (561510) distribute tickets, and freight carriers (481112) share infrastructure. Air traffic control (488111) manages flight safety across all scheduled operations.
What activities does NAICS 481111 include?
Activities cover operating scheduled passenger flights, transporting belly cargo on passenger aircraft, running regional and commuter services, selling ancillary travel products, and managing loyalty programs. The Census definition[5] covers the full scope.
Can small airlines qualify for SBA loans?
Airlines with fewer than 1,500 employees qualify for SBA 7(a) loans covering working capital and equipment. The 504 program funds major capital investments. Details are at the SBA funding programs page[12].
Where are scheduled airline operations concentrated?
Major hub airports in Atlanta, Dallas-Fort Worth, Denver, Chicago, Los Angeles, and New York concentrate the highest volumes of scheduled passenger service. Regional carriers operate from secondary airports and smaller communities, with Alaska and Hawaii depending heavily on scheduled air service for inter-island and remote community transportation.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]Small Business Administration sba.gov
- [8]Small Business Administration sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]SBA 504 program sba.gov
- [11]Census Bureau census.gov
- [12]SBA funding programs page sba.gov
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