
RECOMMENDED READING:
Ancillary revenues: GAO report and Subcommittee hearings promise more regulations
Rebundling: The inevitable conclusion to the unbundling race for airline ancillary revenues
Ancillary revenues: Airlines to earn USD58 billion in 2010; CAPA to review Asia Pacific prospects
The world’s airlines are expected to generate USD70 billion in ancillary revenues this year – or almost one in every eight dollars of revenue earned, according to CAPA research.
“Other Revenue” (ie ancillary, USD billion):
IATA’s Jun-2010 forecast (blue line) vs Dec-2009
forecast (red line): 2001 to 2010F

“Other Revenue” share of total revenue:
IATA’s Jun-2010 forecast (blue line) vs Dec-2009
forecast (red line): 2001 to 2010F

Ancillary Revenues
Ancillary revenue is a hot topic for the airline industry, as it seeks to cope with pressures on top line revenues from ticket sales amid intense competition. The ancillary revenue (merchandising) revolution centres on airlines unbundling their service offering and charging passengers for items they wish to purchase. Baggage fees are one of the fast growing items in ancillary portfolios that also includes seat allocation, inflight services and products, related travel products (including insurance, car hire and accommodation), inflight advertising, airport lounges access and increasingly diverse opportunities, including concert tickets, mobile phone credits and more.
CAPA also publishes Peanuts! Weekly, which regularly covers ancillary revenue trends and developments.
News Headlines

WestJet reports 34% increase in operating profit in 2011
Aer Lingus deploys GuestLogix technology across entire network
Ryanair reports better than expected 3QFY2012, raises FY forecast
Tiger Airways reports operating loss in 3QFY2012, expects 'significant' loss in FY
Jet Airways to advertise Nokia product on outside of aircraft
Air France launches personalised customer service at Paris CDG
GuestLogix: Alcoholic beverages, fresh food and comfort items driving on-board ancillary revenue
easyJet and National Express launch new online travel agreement
Iberia selects Amadeus Ancillary Services technology
Older articles >>
CAPA Analysis
US carriers see robust ancillary revenue picture in 2012
2012 marks beginning of next chapter in US airline industry
US airlines’ ancillary revenues continue to grow, but at a slower pace for legacy carriers
Spirit Airlines launches travel packaging in bid to further grow industry-leading ancillaries
Delta slot deal approved as US Airways reports profits
DOT fee rule fails to address transparency for consumers
Volcanic ash weighs on flybe result
In conversation with AirAsia X CEO Azran Osman-Rani
US airline fees for baggage and changes tallies almost USD6bn
US carriers are biggest earners as ancillary revenues top USD21bn
The battle for supremacy in Europe’s short-haul aviation markets
Older articles >>



