News and Research

The billion-dollar business behind your airline luggage fees

January 26, 2026

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 year before and $67.4 billion in 2016, thanks to an increase in the number of passengers and the rise in economy fares among the premium carriers that pay for the seat only.

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