airline industry

A Field Guide to the Best of Airline a la Carte – Report

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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. The report explores how airlines around the world generate significant revenue through optional services such as baggage fees, seat assignments, and onboard […]

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

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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

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Free hand luggage for everyone – but who’s going to pay for it?

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Handelsblatt Jay Sorensen, CEO of IdeaworksCompany, raises another point: “Low-cost carriers set the price floor. If they raise their prices, traditional airlines will be pleased and raise their prices as well.” The EU Parliament’s consumer-friendly initiative could therefore lead to higher prices for all passengers, which could also reduce demand for air travel. Increased hand

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8 Airline Myths Holding the Industry Back – Press Release

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New report from IdeaWorksCompany calls on airlines to simplify policies, strengthen margins, and rebuild customer trust.  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

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Jay Sorensen Busts 8 Airline Business Myths – Report

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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,

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Will Europe’s planned luggage rules kill the budget airline business model?

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Financial Times Jay Sorensen, an expert on airline charges who runs the IdeaWorks consultancy, warned that such a move would “mess with the income mechanics of a low-cost carrier” resulting in higher fares. He estimates European-based airlines collected $16bn in bag fees last year, with around 60 per cent going to low-cost carriers. While bag

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The billion-dollar business behind your airline luggage fees

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The Times Sunday – London These extras, which include things like seat selection, priority boarding and baggage, are what airlines call “ancillary revenue” and they are making carriers a packet. In November the American aviation consultancy IdeaWorksCompany forecast that airlines globally generated $157 billion (£116 billion) in ancillary revenue in 2025, up from $148.4 billion

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United Airlines’ 2025 Results Soar Past Expectations

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Barron’s As for President Donald Trump’s proposed 10% cap on credit card rates, from which airlines generate billions in revenue from co-branded credit cards, they may not materialize. Jay Sorensen, founder and CEO of IdeaWorksCompany, a consulting firm that analyzes ancillary revenue such as airlines’ loyalty marketing, doesn’t expect the proposed 10% cap will be

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A New Use for Airline Miles: Gliding Past the Velvet Rope

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New York Times Loyalty has turned out to be lucrative. Revenue from these programs provides a major source of profit for airlines, which sell their miles to banks. In 2024, American and Delta each received about $7 billion from frequent-flier programs, according to an analysis of financial filings by Jay Sorensen, who runs IdeaWorksCompany, an

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

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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

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