Yahoo Finance Airlines find $28.5 billion goldmine in extras
In-flight meals, premium seating, early bird boarding: the fees we pay for these creature comforts are ringing up huge profits for airlines around the world.
The latest report from IdeaWorks shows that ancillary revenue for the industry has more than doubled since 2009. The data is derived from the records of 53 airlines that disclose how much they make from add-ons.
Australia's own Qantas Airways weighs in at fifth place with $1.65 billion (US$1.57 billion), with partner revenue from its frequent flier program making up the majority.
Qantas also earns the most extra revenue per head, making $56.21 per passenger.
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Apart from common a la carte features like extra baggage, premium seats and food, ancillary revenue also includes sources such as frequent flier programmes and advertising messages.
Once the domain of low-fare carriers like easyJet or Southwest, major brands have now joined the fray as they search for income in the face of the economic downturn.
Topping the list is United Airlines, which garnered a massive $5.62 billion (US$5.35 billion) in extra fees, followed by Delta Airlines and American Airlines.
The report also shows that low-cost carriers continue to be heavily reliant on selling extras, which make up 38.5 per cent of Spirit's total revenue.
Top 10 Airlines - Total Ancillary Revenue (US$)
United | $5,352,000,000 |
Delta | $2,576,660,000 |
American | $1,987,000,000 |
Southwest | $1,655,000,000 |
Qantas Airways | $1,574,698,320 |
Ryanair | $1,388,674,580 |
Air France/KLM | $1,205,727,600 |
easyJet* | $1,147,743,960 |
US Airways | $1,073,300,000 |
Korean Air | $720,900,000 |
* IdeaWorksCompany estimated easyJet 2012 amount based upon 2011 results and subsequent disclosures
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