Money made from charging passengers for optional add-ons are contributing to a ‘substantial increase’ in airline revenues
According to a study of 63 carriers by IdeaWorksCompany has revealed that ancillary revenue (for optional extras such as seat selection, luggage, headphones or onboard alcohol, for example) was US$38.1 billion last year.
This “unbundling” of fares means that the average passenger is now paying an extra US$17.49 to fly, thanks to charges for things that were once included in the price.
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With an 8.5 per cent increase on 2013, IdeaWorksCompany said that this has been the pattern for the eight consecutive years it has carried out the survey, demonstrating a continuing upward trend.
Among low cost carriers, ancillary revenue jumped more than US$2.9 billion (32.8 per cent), while major US airlines saw an increase of US$2.6 billion (18.7 per cent) from this type of income.
The ten carriers that generated the most revenue from “a la carte” fees last year were:
1. United
2. American Airlines/US Airways
3. Delta Air Lines
4. Air France/KLM
5. Ryanair
6. Southwest
7. Lufthansa Group
8. Easyjet
9. Qantas
10. Alaska Air Group
Visit ideaworkscompany.com