airline industry

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

Articles about IdeaWorksCompany / By

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 […]

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

The billion-dollar business behind your airline luggage fees

Articles about IdeaWorksCompany / By

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

The billion-dollar business behind your airline luggage fees Read More »

United Airlines’ 2025 Results Soar Past Expectations

Articles about IdeaWorksCompany / By

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

United Airlines’ 2025 Results Soar Past Expectations Read More »

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

Articles about IdeaWorksCompany / By

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

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

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

Articles about IdeaWorksCompany / By

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

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

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

News & Research, Press Releases / By

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

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

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

News & Research, Reports / By

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

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

When bargain airfare is no bargain: airline fees hit all-time high

Articles about IdeaWorksCompany / By

Boston Globe In 2024, airlines collected a record $148 billion in fees. Commonly referred to as ancillary fees, these revenue-generating extra charges come from fees for seat selection, priority boarding, food and drink, luggage, or dedicated overhead space, and even money airlines make from selling frequent flyer miles. The previous record for ancillary fees was

When bargain airfare is no bargain: airline fees hit all-time high Read More »

Air Canada trails global peers in fee revenue, but Aeroplan poised to boost it

Articles about IdeaWorksCompany / By

Toronto Star All those checked bags, seating upgrades and onboard snacks you pay for on Air Canada flights are starting to add up for the company. While the country’s biggest airline lags behind other global carriers in revenue from passenger fees, it is poised to catch up after its recent purchase of the Aeroplan rewards

Air Canada trails global peers in fee revenue, but Aeroplan poised to boost it Read More »

Scroll to Top
IdeaWorksCompany
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.