News and Research

Global air travel costs ‘cut by 40% in nine years’ as ancillary revenues soar

November 19, 2025

Travel Weekly

Optional add-ons offered to sustain lower base fares have helped cut the total cost of air travel by roughly 40% since 2016, according to new research.

Ancillary revenues from passengers paying extra for items such as baggage, seat selection and onboard food are projected to generate $157 billion this year, up from $148.4 billion in 2024 and “dramatically higher” than $67.4 billion almost a decade ago.

IdeaWorksCompany, a global consultancy on airline ancillary revenue, attributed the figure more than doubling due to steady passenger growth and the widespread adoption of basic economy fares by carriers around the world.

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