Wednesday,  December 11, 2019  8:27 pm

These airlines recently made billions in ancillary fees

  • Air
  •   07-24-2019  2:46 pm

These airlines recently made billions in ancillary fees

IdeaWorksCompany has released a report on the 2018 Top 10 Airline Ancillary Revenue Rankings.

READ MORE: This is what the future of airline commissions might look like

The initial findings were sponsored by Cartrawler, a B2B travel technology platform with 4,000 travel partners, 2,500 transport suppliers and one billion end customers.

The following airlines ranked amongst the top 10 for 2018 in total ancillary revenue. Totals are reflected in USD.

  • American Airlines | $7,245,000,000
  • United | $5,802,000,000
  • Delta | $5,570,000,000
  • Southwest | $4,049,000,000
  • Ryanair | $2,801,536,938
  • Lufthansa Group | $2,628,328,912 
  • Air France/KLM | $2,579,438,796*
  • easyjet | $1,597,900,258
  • Spirit | $1,493,108,000
  • Air Canada | $1,452,733,488

The approximate sources of these revenues can be attributed to three categories: frequent flyer programs, a la carte services, such as checked baggage fees, and travel retail commissions. Of the 10 airlines ranked, easyjet was the only airline that didn't make money off of its frequent flyer program.

In comparison, Air Canada, the only Canadian airline to make the list, earned 39 per cent of its ancillary revenues from its frequent flyer program, and 61 per cent from its a la carte services and travel retail commissions. 

According to the report, ancillary revenue and a la carte revenue are terms which can be easily confused. Ancillary revenue is not limited to fees for optional services. It also includes other ways in which passengers generate revenue for an airline. 

To view the full report, click here.

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