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2026 Yearbook Shows Ancillary Revenue Grows Nearly Twice as Fast as Overall Airline Revenue – Press Release

September 8, 2026

The 2026 SeatMaps.com Yearbook of Ancillary Revenue by IdeaWorksCompany, released today, examines ancillary revenue activities and results for 63 airlines in 2025. Now in its 19th year, the Yearbook continues to serve as the leading source of industry research on airline ancillary revenue.

“Ancillary revenue growth on the pace and scale revealed in this Yearbook ‒ double the rate of overall revenue and increasing $13.2 billion among like-for-like airlines – puts a spotlight on how both core and ancillary products are merchandised. As airlines invest in new seat designs and premium capacity, accurate data and visual content help make those high-value options more visible in direct and indirect sales channels, enable airlines to merchandise their cabins more effectively and help passengers make informed choices and know what to expect onboard,” said Djois Franklin, Chief Executive of SeatMaps.

“Ancillary revenue gains over the past five years have been powered by the airline industry’s embrace of seat assignment fees and greater reliance on branded fares,” said Jay Sorensen, President of IdeaWorksCompany and author of the report. Ancillary revenue has demonstrated remarkable durability in both good times and bad. It has adjusted reliably to economic challenges, often more effectively than passenger fares, which truly makes it an economic miracle for the airline industry.”

The 110-page 2026 SeatMaps.com Yearbook of Ancillary Revenue by IdeaWorksCompany is provided free of charge through the sponsorship of SeatMaps.com.

2026 SeatMaps.com Yearbook of Ancillary Revenue by IdeaWorksCompany – Report

September 8, 2026

The 2026 SeatMaps.com Yearbook of Ancillary Revenue by IdeaWorksCompany examines ancillary revenue activities and results for 63 airlines in 2025. Now in its 19th year, the Yearbook continues to serve as the leading source of industry research on airline ancillary revenue. Key findings from the 2026 Yearbook include:

Ancillary revenue continues to outpace overall airline revenue. Among the 58 airlines appearing in both the 2025 and 2026 Yearbook editions, total ancillary revenue increased 13.4%, compared with a 7.2% increase in total revenue . . . that’s nearly twice as fast.
Billion-dollar ancillary revenue has become routine. Thirty airlines generated at least $1 billion in ancillary revenue in 2025, up from 27 airlines in 2024.
Frequent flyer programs generated substantial revenue for the largest U.S. airlines. American, Delta, Southwest, and United generated a combined $27.9 billion from their frequent flyer programs in 2025, equivalent to an average of $37.72 per passenger.

The 110-page 2026 SeatMaps.com Yearbook of Ancillary Revenue by IdeaWorksCompany is provided free of charge through the sponsorship of SeatMaps.com.

Co-Branded Cards Help Bring United $11.5 Billion in Ancillary Revenue – Press Release

September 2, 2026

United Airlines is rapidly reshaping its customer proposition around premium experiences, loyalty, co-branded cards and ancillary revenue, according to a new 18-page IdeaWorksCompany report, “United is Winning the Race for Brand-Loyal Consumers.” Written by airline revenue and loyalty expert Jay Sorensen, the report examines United’s expanding portfolio of products and strategies introduced during 2025 and 2026.

“The challenge for any airline leadership team is that innovation requires balance,” said Jay Sorensen, President of IdeaWorksCompany. “Playing it too safe gets you nowhere, but running with scissors is obviously unsafe. ‘Scissors’ is my analogy for complexity.”

United is Winning the Race for Brand-Loyal Consumers – Report

September 2, 2026

United’s lounge network, with 50+ locations, is another critical component of its brand-loyal strategy. The report estimates its network serves about 70,000 daily guests. That’s more than 25 million guests per year, which is equal to the annual passenger traffic of JetBlue. The report also examines United’s “Base” fares for the Premium Plus and Polaris cabins, which removes certain benefits, such as Polaris lounge access and advance seat assignments, for a lower fare.

How Airlines Turn Bags, Seats, and Snacks into Billions – Press Release

March 17, 2026

IdeaWorksCompany, the leading global consultant on airline ancillary revenue, has released a new report, A Field Guide to the Best of Airline a la Carte, written by veteran airline industry consultant Jay Sorensen. Drawing on global data and industry examples, the report examines the strategies airlines use to successfully merchandise ancillary services while maintaining customer satisfaction. It highlights how baggage fees remain the largest source of ancillary revenue, while seat assignment fees have rapidly grown to rival baggage as a major contributor for many airlines. Among the report’s observations:

Top performing airlines can earn baggage revenue of $20 per passenger when they charge for overhead carry-on bags.
Baggage, seats, and branded fares generate 95%+ of ancillary revenue for airlines lacking a major co-branded card program.
Likely 25% of American Airlines’ passengers have bag payments waived through a co-branded credit card or elite loyalty status.
United collected $1.3 billion from seat fees in 2023, which was more than the $1.2 billion it received for checked bags the same year.
EasyJet’s onboard retail per passenger revenue for FY2024 was £2.38 ($3.01) and profit was £0.68, for a very healthy 28.6% profit margin.

Jay Sorensen Busts 8 Airline Business Myths – Report

February 24, 2026

IdeaWorksCompany, the leading global consultant on airline ancillary revenue, has released a new report challenging eight deeply rooted airline business myths that limit profitability, weaken pricing integrity, and erode public trust.

The 18-page report, Jay Sorensen Busts 8 Airline Business Myths, takes direct aim at widely accepted practices such as upgrade auctions, complex fare-change rules, inconsistent baggage policies, and the belief that airlines are destined to operate with chronically low margins. Many of these ideas persist not because they are effective, but because they have become embedded in industry culture.

The analysis also highlights operational issues that directly affect the passenger experience, including baggage policies that create gate congestion, digital platforms that emphasize transactions rather than travel inspiration, and the lack of empathy for non-tech-savvy travelers as airlines expand automation. Addressing these issues, the report says, can simultaneously improve customer satisfaction and financial performance.

Mission Possible: Airlines Earn Record Ancillary Revenue While Consumers Enjoy Lower Fares – Press Release

November 18, 2025

IdeaWorksCompany, the leading global consultant on airline ancillary revenue, projects that airlines worldwide will generate a record $157 billion in ancillary revenue in 2025, up from $148.4 billion in 2024, and dramatically higher than $67.4 billion for 2016. The IdeaWorks Global Estimate of Ancillary Revenue attributes this increase to steady passenger growth and the widespread adoption of basic economy fares by carriers around the world.

Ancillary revenue now accounts for 15.7% of total airline revenue, up from 9.1% in 2016. Among individual airlines, this share ranges from 3.2% to as high as 62%. Ancillary revenue includes a la carte purchases such as baggage, seat selection, and onboard food, as well as commissions from car rentals, hotel bookings, and co-branded credit card partnerships tied to frequent flyer programs.

Click here to view/download the graphic from page 1 of the press release as a JPG file.

Click here to view/download the graphic from page 2 of the press release as a JPG file.

Kong vs. Godzilla: US Banks and Airlines Clash Over Traveler Loyalty – Press Release

October 14, 2025

New IdeaWorksCompany report reveals a battle for dominance in America’s $1.1 trillion travel market. American Express, Capital One, Chase, and Citi are squaring off with the largest US airlines in a colossal struggle for traveler loyalty, according to a new report from IdeaWorksCompany titled Kong vs. Godzilla: US Banks and Airlines Fight for Traveler Loyalty. The report compares banks to King Kong and airlines to Godzilla, spotlighting a marketplace where financial institutions and carriers both wield powerful advantages. The stakes are enormous: U.S. residents spend more than $1.1 trillion annually on travel . . . and both sides want the bigger share.

“Airlines invented loyalty programs, but banks have amplified them into multi-billion-dollar businesses,” said Jay Sorensen, President of IdeaWorksCompany and author of the report. “Today, banks and airlines are colliding over who owns the customer relationship. For consumers, the question is simple: Are you loyal to the airline, or the bank?”

Kong vs. Godzilla: US Banks and Airlines Fight for Traveler Loyalty – Report

October 14, 2025

American Express, Capital One, Chase, and Citi are squaring off with the largest US airlines in a colossal struggle for traveler loyalty, according to a new report from IdeaWorksCompany titled Kong vs. Godzilla: US Banks and Airlines Fight for Traveler Loyalty. The report compares banks to King Kong and airlines to Godzilla, spotlighting a marketplace where financial institutions and carriers both wield powerful advantages. The stakes are enormous: U.S. residents spend more than $1.1 trillion annually on travel . . . and both sides want the bigger share.

Banks hold the cards. With hundreds of millions of credit card accounts and vast consumer data, the Big 4 card issuers can influence spending habits and can even determine the financial stability of airlines. Their travel platforms now operate like online travel agencies, offering flights, hotels, and more with lucrative reward bonuses. Airlines control the experience. Loyalty programs, free checked bags, seat upgrades, and extensive airport lounge networks give airlines a home-field advantage. Reward travel can be deeply discounted since airlines “own” their inventory.

Basic Economy Remakes the Airline Business: Consumers Pay More to Avoid Air Travel Misery – Press Release

September 9, 2025

The 2025 Yearbook of Ancillary Revenue reveals a cashflow shift: ancillary revenue increased while fares dropped. The 2025 edition of the Yearbook of Ancillary Revenue by IdeaWorksCompany, released today, describes ancillary revenue activities and results for 61 airlines in 2024, continuing the publication’s role as the industry’s singular voice for 18 years. The results in this Yearbook represent the 61 airlines for which IdeaWorks research identified complete or partial elements of ancillary revenue.

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