Articles about IdeaWorksCompany

The latest from IdeaWorksCompany.

Listed below are the most recent posts to the website. Click on any item title or button to access our latest reports, press releases, and news items. Or use the menu to the right to browse news, reports, articles featuring IdeaWorksCompany research, and press releases.

To download a report, click the download button in the upper-right corner of the popup:

Airlines Want a Piece of Every Purchase You Make

September 6, 2025

New York Times

The airlines share little publicly about their loyalty programs, but American and Delta each received about $7 billion from frequent-flier programs last year and United about $6 billion, according to an analysis of financial filings by Jay Sorensen, who runs IdeaWorksCompany, a consulting firm that works for airlines and other aviation businesses.

Those programs are supported in part by the millions of people who use airline credit cards and then earn airline points for spending. The banks that issue those cards buy those points from the airlines in bulk, typically spending many billions of dollars every year.

“What really changed the dynamics of these programs is the arrival of credit cards,” Mr. Sorensen said.

Moneybags

September 1, 2025

Low Fare and Regional Airlines – LARA

Passengers are often confused by airlines’ baggage policies, but many simply game the system. Alan Dron investigates what low-fare airlines can do to protect a valuable ancillary revenue stream and considers an alternative that may well introduce another.

“We’ve identified a desperate need for solutions for the baggage problem at gates, so have developed a program that addresses that,” said Jay Sorensen, President of IdeaWorksCompany.

This is an excerpt from the August/September 2025 issue of the magazine.

Ten Life Lessons From The Airline Business

July 21, 2025

Forbes Magazine

It is said that the only thing to know about running an airline is this: “Fly the airplanes on time and answer the goddamn telephone.” Truthfully, there is probably a bit more to it.

Last week, longtime airline executive and consultant Jay Sorensen issued a report entitled “Fly High, Land Right: Ten Life Lessons for Success in Business.”

Sorensen went to work for Midwest Express in 1984. He left in 1996 as director of marketing, and became an airline consultant. He has consulted for about 30 carriers, big and small. Here are his tips.

The Move Toward One Rewards Plan for All Your Travel

June 11, 2025

Wall Street Journal

With so many points floating around, airlines have decreased their value. The average cost in points or miles for an economy flight has jumped 36% since 2019, according to an analysis of rewards pricing across six U.S. airlines from aviation consultant IdeaWorks. Only one of those – American Airlines – reduced the cost.

How airline fees have turned baggage into billions (18-minute audio)

June 4, 2025

BBC World Service

From extra bags to choosing a seat, airline passengers are faced with an array of extras, for a fee. And stricter limits for luggage in particular have turned ‘compatible’ suitcases and bags into big business. From bag manufacturers, racing to design the next travel bag innovation, to the travel influencers building audiences by sharing money-saving packing hacks. But what do passengers think about it all?

Presenter: Sam Gruet

Producer: Megan Lawton

Click here to listen to an 18-minute program from the BBC.

How airline fees have turned baggage into billions (article)

June 4, 2025

BBC World Service

There was a time when checked bags, seat selection and your meals all came as standard on commercial flights. But that all changed with the rise of the budget airlines, says Jay Sorensen of US aviation consultancy IdeaWorks. It was in 2006 when UK low-cost carrier FlyBe became what is believed to be the world’s first airline to start charging passengers to check in bags. It charged £2 for a pre-booked item of luggage, and £4 if the customer hadn’t paid in advance. Other budget carriers then quickly followed suit, with the so-called flag carriers or established airlines then also doing so, at least on shorter flights. In 2008 American Airlines became the first US airline to charge a fee, $15, for the first checked bag on its domestic routes. Mr. Sorensen says such traditional airlines felt they had no choice when they “began to realise that the low-cost carriers were providing very significant competition.” He adds: “They felt they had to do something to meet that.”

Frequent Flyer Study: Award Ticket Prices Are Soaring—Except At American Airlines

March 13, 2025

View from the Wing

Jay Sorensen’s IdeaWorks is out with their annual study of airline frequent flyer award pricing, and he has interesting findings after making 1,200 flight searches in February 2025 for travel during between June and October. Looking at the cost of domestic roundtrip bookings with a Saturday night stay for one passenger, the report finds that award price inflation (36% since 2019) is much worse than inflation in the broader economy (24%). Compared to last year’s study results, though, all airlines charged fewer points on average for a ticket. American AAdvantage redemptions have actually got 21% cheaper in this category over the last six years. The airline has said a key component of their strategy has been offering a more compelling rewards program than competitors.

Why do airlines keep adding new fees?

January 3, 2025

Radio Canada

According to data compiled by IdeaWorksCompany, 56.4% of Spirit Airlines ‘ revenue came from ancillary fees in 2023, making it the global leader. Alberta-based Flair follows a few ranks below, earning 40% of its revenue from surcharges it charges for things like baggage and seat selection.

“The introduction of ancillary fees has been a big financial success for airlines,” says Jay Sorensen, president of IdeaWorksCompany. “I would also say it’s been very good for consumers, because by unbundling services, travelers can choose what they want,” he adds. This à la carte offer would allow the most minimalist customers to pay as little as possible.

Airlines are pushing ancillaries to boost revenue, but new offerings slow to come

October 11, 2024

PhocusWire

Last year, total airline revenue exceeded pre-pandemic results hitting $918 billion, according to the recently published 2024 CarTrawler Yearbook of Ancillary Revenue. Ancillary services played a role in that growth, with passengers increasingly willing to pay for options to personalize their experience – elements such as more legroom, early boarding or checked baggage. According to the CarTrawler report, 57 airlines together saw a $7.4 billion rise in ancillary revenue in 2023, a more than 25% increase over 2022 – which was already up 50% over 2021.

Report: 2023 Ancillary Airline Revenue ‘Surges’ Over ’19 Levels

September 25, 2024

Business Travel News

The airlines with the most ancillary revenue in 2023 collected $54.1 billion, which “is far in excess” of the $38.4 billion result for the top 10 carriers for 2019, according to a new IdeaWorksCompany report, released Tuesday. The company used financial statements, annual reports, analyst research and investor relations presentations for 68 airlines to produce the 2024 edition of the CarTrawler Yearbook of Ancillary Revenue. Among those, 57 carriers appeared in last year’s publication and were used in year-over-year comparisons.

Industry Definitions

Articles about IdeaWorksCompany

The latest from IdeaWorksCompany.

News & Research