Ancillary charges earn airlines big bucks

Ancillary revenue for carriers like Spirit Airlines is skyrocketing in 2011

Airline ancillary revenue is expected to rise by 44 per cent this year with Amadeus estimating worldwide takings to soar to US$32.5 billion. 

According to research conducted by the travel technology provider, the $9.9 billion increase in non-ticket revenue will lift international aviation from a loss-making position and provide it with “an effective hedge against runaway fuel bills”, predicted by the International Air Transport Association to be $10 billion higher than last year.

The study, which took into account the ancillary takings of more than 200 airlines, identified carriers like AirAsia, Aer Lingus, easyJet, Ryanair and Spirit Airlines as the “Ancillary Revenue Champs”, with these airlines generating the highest percentage (nearly 20 per cent) of their income from supplementary fees.

Major US airlines such as Alaska, American and United, were also flagged as strong earners of ‘extras’ income (11.9 per cent of total takings) thanks to a combination of frequent flier revenue and baggage fees.

Low-cost carriers, including AirTran, Blue1, IndiGo, Jazeera Airways, Pegasus and Spring Airlines and ‘traditional airlines’ like Air China, Emirates, Finnair, LAN, Qatar Airways and Singapore Airlines trailed in ancillary receipts with only 6.5 and 2.9 per cent of total revenue generated by non-ticket fees.
Source = e-Travel Blackboard: M.H
Pin It

Comments are closed.