News and Research

Bundle Up ─ Ancillary products are growing and becoming creative

March 1, 2023

Air Transport World – ATW

Ancillary fees have become a significant part of how almost all airlines generate revenue.  In the air transport business, they really started with budget airlines like Ryanair in Ireland and Spirit Airlines in the US, which offer passengers the cheapest base ticket along with optional fees for the add-ons that people wanted.  In 2019, according to a report by IdeaWorksCompany and CarTrawler, worldwide airline ancillary revenue hit an all time record of $109.5 billion.  While that slumped to just below $60 billion in 2020, the first year of the pandemic, it was back up to almost $103 billion in 2022.

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