Canadian Press “How does an airline compensate itself for the losses that are occurring for the first quarter and the second quarter and maybe even the third quarter this year? Fares are not going to track the price of oil, because there is this residual loss that has to be accounted for,” said Jay Sorensen, […]
WestJet the latest airline to hike baggage fees amid sky-high jet fuel prices Read More »
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
A Field Guide to the Best of Airline a la Carte – Report Read More »
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
How Airlines Turn Bags, Seats, and Snacks into Billions – Press Release Read More »
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
Free hand luggage for everyone – but who’s going to pay for it? Read More »
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
8 Airline Myths Holding the Industry Back – Press Release Read More »
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,
Jay Sorensen Busts 8 Airline Business Myths – Report Read More »
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 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 »
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 »
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