According to a report by the consulting firm IdeaWorks, in 2014, there was a 21% increase in airline ancillary revenues, reaching $31.8 billion.
Out of the total revenue, low-cost carriers make the most money, and for the past 4 years, the ranking has been dominated by the American company Spirit. Ancillary fees represent 38.7% of its total revenue. Second place is held by Wizz Air with 33.7%, followed by Allegiant with 32.4%, and in fourth place is Ryanair with 24.6%.
The low-cost airline Wizz Air collects an additional €32/passenger. Calculated based on the number of passengers transported last year, 3.9 million, Wizz Air makes €125 million in Romania from these additional fees.
Ryanair generated ancillary revenues of €1.39 billion. With a total of 90.6 million passengers transported, it follows that Ryanair earns an average of €15.3/passenger. In 16 months of activity in Romania, the company transported 500,000 passengers from Otopeni Airport, with Ryanair collecting $7.65 million.
Lufthansa Group, which includes Lufthansa, Austrian Airlines, Germanwings, and SAS, collected ancillary fees from passengers traveling to/from Romania of approximately €21.2 million, according to calculations by ECONOMICA.NET based on available data. Tarom and Blue Air do not publicly disclose detailed financial results.
The ranking of companies is similar to last year’s, with the first place occupied by the American operator United with $5.86 billion, followed by American and US Airways, which merged, with $4.65 billion. Third place is held by Delta Airlines, with $3.2 billion, up from $3 billion in 2013.
Among European companies, Air France/KLM is in fourth place with over $2 billion, followed by the low-cost giant Ryanair with $1.9 billion. In seventh place is Lufthansa Group with $1.6 billion, followed by easyJet with $1.4 billion.
For the most part, legacy carriers charge passengers for a la carte menus, extra legroom, and baggage. However, the largest portion of the money comes from loyalty programs initiated in partnership with financial institutions.
An analysis of 63 airlines shows that operators earn an average of $17.5 per passenger, 8.5% more than the 2013 results.
Source: Economica
Frequently Asked Questions
What are airline ancillary revenues?
Ancillary revenues are earnings generated from non-ticket sources, such as baggage fees, seat selection, on-board catering, and loyalty program partnerships.
Which airline earns the most from additional fees per passenger?
According to the 2014 data, Spirit Airlines led with 38.7% of its revenue coming from ancillary fees, while Wizz Air earned approximately €32 per passenger.
What is the main source of ancillary revenue for major airlines?
While baggage and seat fees are common, the largest share of ancillary revenue for major carriers often comes from frequent flyer programs and financial partnerships.