News and Research

August 11, 2015

August 11, 2015

European Legacy Airlines May Experience Ancillary Pains
Wall Street Journal
Lufthansa will become the first European legacy airline to unbundle services by introducing a three-tier fare system starting from October. This allows the company to compete more directly on the actual fare but also to charge more for non-ticket items like checked bags and seat booking.  Such services incur minimal costs and therefore can add a very profitable revenue stream for airlines. So-called ancillary revenues jumped 21% in 2014 globally from a year earlier, according to industry consultant IdeaWorksCompany and online booking engine CarTrawler.

Scroll to Top