Income from ancillary sales rockets
Airlines earned 21% more from ancillary sales last year than in the previous 12 months, according to aviation analyst IdeaWorks Company.
It claimed that collectively they earned $38.1 billion from the sale of items such as check-in baggage, insurance, inflight meals, hotel bookings and co-branded credit cards and even cancellation fees.
"Ancillary revenue is an increasingly important indicator of commercial success, and a major contributor to the bottom line of airlines," said Michael Cunningham, chief commercial officer at CarTrawler, sponsor of the report.
"The secret to unlocking this revenue stream can be found in the data that customers generate with every transaction. It is no longer just the preserve of low cost carriers – it is something from which all airlines are benefiting."
As a percentage of total revenue, low-cost carriers unsurprisingly gained the most, with Spirit Airlines of the US earning the most.
Ancillary revenue at all US carriers jumped by more than 18% to $2.6 billion in 2014, with the big three carriers – United Airlines, American/US Airways and Delta also the world’s top three for ancillary income.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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