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 »
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 »
El Universal This year, airlines are estimated to receive $157 billion globally in ancillary or complementary services, which is 5.7% more than last year, according to the consultancy IdeaWorksCompany. Ancillary services are those services that a passenger pays for to have a more comfortable trip, such as checked baggage under the plane, extra baggage, seat
Airlines profit from extra charges Read More »
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 »
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
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 »
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 »
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 »
PohcusWire Total global ancillary revenue for airlines broke records in 2024, surpassing $148 billion, and carriers continue to grow through the addition of these revenue streams. IdeaWorksCompany published these findings in its 2025 edition of the “Yearbook of Ancillary Revenue,” which revealed traditional airlines were “under pressure with more traffic but lower fares” in 2024.
Airlines set ancillary records, lean into new revenue streams Read More »
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