The Amadeus Yearbook of Ancillary Revenue

Airlines

original author/publisher IdeaWorks Company

tags/keywords

ancillary revenue ancillary fees airlines

About this Resource

Ancillary revenue totaling more than $22.6 billion (€18.23 billion) is now produced by every type of airline and in every region of the world.  The first IdeaWorks ancillary revenue report in 2008 identified $2.45 billion, from just 23 airlines, in this then-new area of sales.  The consistent growth of extra revenue from three key sources demonstrates how this activity has become a crucial component of airline income. Carriers worldwide rely upon the revenue from frequent flier activities, a la carte features, and commission-based products, to create profits in an era of ever-rising fuel costs - - while keeping fares modest in a recession-weary world.    

The new 2012 Amadeus Yearbook of Ancillary Revenue by IdeaWorksCompany, now available free online, provides the most detailed global assessment of a bottom-line-booster that can represent more than 30 percent of a carrier's revenue.  The full 69-page report examines 50 airlines that disclose revenue from activities such as the sale of frequent flier miles sold to partners, fees for checked bags, and commissions from hotel bookings.  

The Yearbook's individual airline listings clarify the type of ancillary revenue activity for each carrier.  Some airlines are vague in their descriptions and merely provide an "ancillary revenue" line on the income statement without further details.  Some of the carriers don't specifically list ancillary revenue, but describe qualifying activities such as "revenue from the sale of frequent ?ier miles to partners" or "revenue from onboard cafe sales."  Other airlines provide robust details and seem very proud of their ancillary revenue accomplishments.

Resource contributor

Paul Yachnes

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