Ancillary revenue rose to €7.68 billion last year: report

Ancillary revenue increased by 345 percent to €7.68 billion last year from 2006, according to a report released by IdeaWorks, a Wisconsin-based market research firm.

The firm analysed financial statements from 92 airlines to develop a picture of ancillary revenue activity by carriers worldwide.

Legacy airlines now fill the top three positions, which once included low cost carriers Ryanair and easyJet. And the ancillary revenue produced by individual carriers, such as United and Ryanair, has increased dramatically. The top five club now requires far more revenue to join - - in excess of €450 million. That’s more than any single carrier produced to join the prior top five list.

Top five airlines in terms of total ancillary revenue are as follows: American (€ 1.65 billion), United (€ 1.2 billion), Delta (€1.12 billion), Ryanair (€625 million) and Qantas (€458.6 million). 

In terms of ancillary revenue as a percentage of total revenue, Allegiant topped with 22.7 percent. It is followed by Ryanair (19.3 percent), easyJet (15.5 percent), Jet2.com (14.8 percent) and Vueling (14.1 percent). 

Some of the highlights include:

• United Airlines generates an average of €4.36 ($5.81) from checked baggage charges per US domestic passenger.

• Southwest Airlines sells about four Business Select tickets per flight on average and the programme contributed approximately $75 million (€56.3 million) in revenue in 2008.

• The Qantas Frequent Flyer programme contributes whopping revenue of €11.87 ($15.82) per passenger - - a record among the world’s airlines.

• AirAsia X, the Malaysia-based low cost airline, realises €2.06 million ($2.75 million) from the sale of pre-order meals to passengers on its long haul flights such as London–Kuala Lumpur.

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