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Report: Airlines Made $33 Billion Last Year Charging For Checked Bags

Entrepreneur

A new study from IdeaWorks examined how much customers paid for baggage-related fees last year across 20 airlines. Paying a fee to check a bag seems like an unnecessary added cost, especially when you have no choice — you need your luggage to travel with you. And according to a new report, those baggage fees really add up for the biggest airlines that reported major earnings on the fees alone. A study by ancillary revenue and travel industry specialists IdeaWorks suggests that, in 2023, the top 20 airlines in the world made $33 billion in baggage fees, up 15% from the same time last year when airlines made $29 billion in 2022.

Airlines Make Whopping $33 Billion On Bags, See Where They Fly Free

Forbes

A recent study by ancillary revenue specialists IdeaWorks reveals airlines earned $117.9 billion from extras, including onboard sales, baggage charges, seat selections, and loyalty programs last year. Airline revenue from baggage fees surged to $33 billion. This is a significant 15% increase over the $29 billion airlines earned from bags in 2022 and exceeds the $32.9 billion in baggage fee revenue airlines made in 2019, pre-COVID.

Airlines will make a record $118 billion in extra fees this year—their websites are designed to get you to pay

Fast Company

Airlines are piling on fees for checked bags, assigned seats, and other extras. Here’s how their websites pressure fliers into paying for them. It’s not your imagination: Airlines are piling on more fees and extra charges, driving up the cost of air travel. Across the industry, revenue from what’s known as ancillary sales—fees for selecting seats, checking bags, and buying food, to name a few—will reach a record $117.9 billion in 2023. That’s a 7.7% increase from pre-pandemic records, according to a recent study from airline consultancy firm IdeaWorks and B2B car rental company CarTrawler.

Special Offers ─ Ancillary Revenue

Low Cost and Regional Airlines Magazine ─ LARA

“Three areas of innovation have caught my attention ─ lounges, super apps and booking flexibility,” says Jay Sorensen, President of IdeaWorksCompany and an expert on airline ancillary revenues.  These innovations are highlighted in IdeaWorks’ and CarTrawler’s Airline Revenue Innovations:  A Global Sample of the Coolest Products and Services.

Fliers Can’t Get Enough of the ‘Upper-Middle Class’ Section of the Plane

Wall Street Journal

The new hot section on the plane isn’t at the very front.  With offerings labeled Premium Plus, Premium Select or Premium Economy, airlines are expanding these sections, which typically come with roomy seats, early boarding, free alcohol and better meals.  Airlines say they appeal to travelers with more disposable income, especially on long-haul flights where business-class seats can run thousands of dollars more.  “I refer to it as an upper-middle cabin for the upper-middle class,” says Jay Sorensen, an industry consultant and president of IdeaWorksCompany.  These sections appeal to travelers on work trips with budget-conscious employers, and vacationers who want some comforts without shelling out for business class.

Airline Ancillary Revenue Hit $69B in 2022, Beating 2019 Levels

PhocusWire

Airline ancillary revenue increased more than 50% in 2022 versus 2021 and beat pre-COVID levels.  The increase, released in the CarTrawler Yearbook of Ancillary Revenue in partnership with IdeaWorks Company, is a mark of the recovery in the airline industry with carriers reaping almost $69 billion in revenue from add-ons and loyalty programs compared to $45 billion in 2021.  The report, which analyzed 65 airlines, also revealed that ancillary revenue was up by about $10 billion versus 2019 levels.

Report: Ancillary Airline Revenue Surpasses Pre-Pandemic Levels

BTN – Business Travel News

The airlines with the most ancillary revenue collected $68.7 billion in 2022, an increase of 51.3 percent year over year, according to a new report from airline ancillary strategy firm IdeaWorksCompany.  To produce the 2023 CarTrawler Yearbook of Ancillary Revenue, released Wednesday, the company scoured financial reports and data from 65 airlines that report ancillary revenue. The year-over-year comparison used just the 61 airlines that also appeared in last year’s edition.

Snacks and seat charges fatten up Ryanair revenues as it ranks in top five airlines worldwide for ‘ancillary’ sales

Irish Independent

Ryanair ranks among the top five airlines in the world in terms of the revenue it generates from ancillary revenues that include everything extra that passengers pay for, from a cup of coffee on board to seat selection, according to a new report from Dublin-based CarTrawler.  CarTrawler offers technology solutions to global travel firms for services such as car hire. Its deputy chairman is Willie Walsh, the former CEO of Aer Lingus owner IAG.  Mr Walsh is currently the director general of the International Air Transport Association.  CarTrawler’s report in conjunction with IdeaWorksCompany shows that total ancillary revenue generated by the 65 airlines rose by more than 50pc in 2022 versus 2021, from $45.4bn to $68.7bn (€65.3bn).

 

The Top 10 Airlines Ranked By The Number Of Employees

Forbes

Airlines do more than just move people across borders.  They connect economies, enable businesses to flourish, boost tourism and support countless other sectors indirectly.  The sheer number of employees in the aviation sector is a testament to its vital role in the global economy. Every flight taken supports jobs, fuels growth and underscores the importance of a connected world.  Based on the 2023 Allianz Partners Big Book of Travel Data by IdeaWorks, here are the top 10 airlines, ranked in descending order by their number of employees at the end of 2022.

Shaping Airline Retail: The Unstoppable Rise of Ancillaries

OAG Aviation

Ancillary revenues are not just a supplemental income source for airlines but have evolved into a critical driver of financial robustness.  Comprehensive research conducted by IdeaWorks and CarTrawler illustrates this shift.  Over the span of less than a decade, global ancillary revenues dramatically rose from $42.6 billion USD in 2013 to over $102 billion USD in 2022. Even more impressive, 2022’s figures almost matched 2019’s record of $109.5 billion USD, despite the disruptions caused by the global pandemic.  This dependency on a strong ancillary segment becomes clear when we delve into the proportion of total airline revenue that is derived from ancillaries. In 2022, a historic high was reached, with ancillary revenues accounting for a staggering 15% of total airline revenue.

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