Friday 23 February 2018

Global revenue from airlines' non-ticket sales doubles

John Mulligan

John Mulligan

Global airline ancillary revenue is predicted to hit $42.6bn (€31bn) this year – nearly double the $22.6bn recorded in 2010, according to a report from US airline consultancy IdeaWorks and Ireland-based car rental firm CarTrawler.

Ancillary revenue is money made by airlines from non ticket sales such as food, checked bags and increasingly by providing in-flight WiFi services.

The report reckons that of the total figure for this year, ancillary revenue from on-board sales of food and beverages, checked bags, and early boarding will account for $23.7bn of the total.

The International Air Transport Association, which is holding its world passenger symposium in Dublin this week, has pointed out that just 5pc of global airline revenue is generated from ancillary revenues.

But for airlines such as Ryanair, the figure is much higher. In its last financial year, its ancillary revenue accounted for €1.06bn of its total €4.88bn in revenue.

Airline passengers are increasingly expecting to be offered additional services such as WiFi, seating options, and pre-flight food ordering.

Irish Independent

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