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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.

Eight Ideas We Admire to Boost Airline Revenue – Report

August 12, 2025

This report spotlights successful ancillary strategies from leading global carriers. Airlines chasing the next revenue breakthrough need look no further. IdeaWorksCompany, the world’s leading authority on airline ancillary revenue, has released an 18-page report: Eight Ideas We Admire to Boost Airline Revenue. The study reveals how these creative practices from airlines around the world are reshaping the way carriers increase profits while improving the passenger experience.

The report highlights exemplary techniques implemented by JetBlue, Turkish Airlines, Sun Country, Jetstar, Condor, Ryanair, Jet2.com, and Pegasus. These airlines have successfully introduced customer-friendly features that deliver measurable ancillary revenue, such as:

• JetBlue: Transforms the seat map into a premium-selling machine with smart visuals and real-time benefit comparisons.
• Jetstar: Unburdens change and cancellation policies with a simple, clear voucher system that increases take-up rates.
• Pegasus: Turns nearly every booking into a loyalty program conversion with a seamless one-click enrollment popup.
• Turkish Airlines: Monetizes empty seats with an in-path upsell that adds comfort and revenue with minimal friction.

Eight Airline Revenue Strategies That Actually Work – Press Release

August 12, 2025

Airlines chasing the next revenue breakthrough need look no further. IdeaWorksCompany, the world’s leading authority on airline ancillary revenue, has released an 18-page report: Eight Ideas We Admire to Boost Airline Revenue. The study reveals how these creative practices from airlines around the world are reshaping the way carriers increase profits while improving the passenger experience. The report highlights exemplary techniques implemented by JetBlue, Turkish Airlines, Sun Country, Jetstar, Condor, Ryanair, Jet2.com, and Pegasus.

Fly High, Land Right: Ten Life Lessons for Success in Business

July 15, 2025

In one sense, the travel industry is built to serve its investors by delivering profits. A more balanced approach would have airlines, hotels, car rental firms and more seeking to well serve investors, employees, and customers. The industry has been inconsistent – but it need not be.

“This report is offered to those working in the airline industry, but its ideas certainly have applicability far beyond it,” said Jay Sorensen, President of IdeaWorksCompany and the author of the report. “I am fortunate to be part of an industry which brings the world together through the magic of air travel. We enable global commerce, deliver leisure experiences, and connect families and friends. I’ve been lucky to learn from others, and this report honors their wisdom.”

Fly High, Land Right is based on Sorensen’s 4+ decades in the air travel business. The 20-page report issued today includes the following advice:

People are hungry for wisdom; the airline industry is best served when its people respect each other, make a good profit, and treat passengers as guests.
Honor your customers; an educated consumer is your best customer.
Your workers are wiser than you; please talk to your front line employees to seek their perspective.
Above all else be honest; employees know when a company relies on honesty to generate more revenue.
Not everyone is cheap; many are willing to spend more for better comfort and convenience.
Listening tells you more; interviewing 100 customers at an airport gate over the course of 3 days garners more wisdom than any survey or focus group can deliver.

Baggage Compliance is the #1 Problem Facing Airlines

April 8, 2025

IdeaWorksCompany is the first to offer on-site consulting and specialized reports to generate millions in new ancillary revenue. The chaos occurring at departure gates around the world is now too obvious to ignore. Some passengers follow the rules for the fares they have purchased; they pay fees to check large bags and only bring smaller carry-ons to the gate. Others have learned the financial reward of flouting the rules. They don’t pay to check any bags and take every bag to the gate knowing most airlines will accept their bags free of charge. Some consumers are simply bewildered by the complexity of fare rules and baggage fees and hope for empathy from the airline and its agents. IdeaWorks is the first consulting firm to offer a packaged solution to help all airlines untangle their baggage problems with 2 on-site consulting products and the only publication that specifically addresses the problem of baggage compliance

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