United tops list of airlines by ancillary revenue in 2017

INTERNATIONAL. United Airlines leads the list of the world’s top ten carriers measured by ancillary revenues in 2017, after they generated a combined US$29.7 billion. Ancillary revenues include income from onboard sales, services such as baggage fees and frequent flyer programmes. The figures are more than ten times the US$2.1 billion registered by the top ten in 2007. The figures, reported by IdeaWorks Company, came from a review of 146 carriers, of which 73 reported their ancillary income.

United, at US$5.7 billion, was followed in the rankings by Delta, American, Southwest and Ryanair. Of those surveyed, Spirit Airlines had the highest percentage of ancillary revenue, at 46.6% of its total income. In Europe, Wizz Air produced the highest percentage at 41.6%.

United tops the ancillary revenue rankings (click to enlarge)

Measured by ancillary revenue per passenger, all of the top ten were low-cost carriers. By region these were: WOW air US$48.87 (Europe and Russia), Spirit US$50.97 (Americas), and AirAsia X US$33.12 (Asia and South Pacific).

“Ancillary revenue keeps on growing and has become a mandatory component for the revenue mix of all airlines. Investors were first delighted by it, and now have come to expect it. That expectation also occurs with consumers who appreciate the flexibility and array of services delivered by airlines. The best producing airlines have become expert retailers of travel-related services, which includes the ability to book hotels, attractions, and of course ground transport,” said Michael Cunningham, Senior Vice President of Distribution at CarTrawler, which sponsored the report.

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