Airlines that make the most in sneaky add-ons revealed: Top four carriers for ‘ancillary revenue’ totals are all American, with Ryanair fifth
- United Airlines made the most ancillary revenue in 2017 with $5.75 billion
- Ryanair is the non-US based carrier to make the most in add-ons with $2.3 billion
- A total of $47.2 billion (£36 billion) was collected by 73 carriers in optional extras
The airlines that make the most money from sneaky add-ons have been revealed – and it’s American carriers topping the rankings, with Ryanair profiting most from these charges among European airlines.
In 2017, United Airlines made the most in ancillary revenues – $5.75 billion (£4.4 billion). It was followed by Delta ($5.4 billion/£4.1 billion), American ($5.3 billion/£4 billion) and Southwest Airlines ($3.1 billion/£2.4 billion).
Ryanair in fifth made $2.3 billion (£1.7 billion) in add-ons such as checked baggage and seat selections, the new study revealed.
United Airlines made the most in ancillary revenue according to a new study, raking in $5.75 billion in 2017
The research, by the US-based IdeaWorksCompany, looked at 73 airlines across the globe that disclose how much they make from additional charges and found that a total of $47.2 billion (£36 billion) was collected by the carriers.
Other airlines making billions in ancillary revenue include Air France/KLM, which ranked sixth after raking in $2 billion (£1.5 billion).
Following are Lufthansa Group ($1.95 billion/£1.5 billion), Alaska Air Group ($1.3 billion/£986 million), Air Canada ($1.3 billion/£986 million) and Easyjet ($1.28 billion/ £971 million).
Other notable figures the research uncovered is that ancillary charges make up 46.6 per cent of sales for US-based low cost carrier Spirit.
Meanwhile American Airlines has a 50 per cent up-sell rate in getting customers to buy more expensive fares such as premium economy, which could net it $1 billion (£758 million).
In addition, the study also showed that there are big increases in the number of Ryanair customers paying for allocated seating and priority boarding.
The survey also covers airlines that disclosed revenue from activities such as frequent flyer points sold to partners, fees for assigned seating, and commissions from hotel bookings
The non-US carrier making the most from extra charges is Ryanair, which made $2.3 billion (£1.7 billion) in add-ons in 2017
Michael Cunningham, senior vice president of distrubution at CarTrawler, which helped write the report, said: ‘The largest single source of à la carte revenue remains checked baggage, with assigned seating a distant second.
‘These are tried and trusted sources of revenue. But savvy airlines know they have more opportunities to serve their customers better.
‘That includes boosting mobile web booking capabilities, implementing dynamic pricing methods, and reaching to capture more travel spending, particularly from hotels, sightseeing, and car hire.’
How much airlines made in sneaky add-ons in 2017
Tables created by the IdeaWorksCompany show how much 73 airlines made in ancillary revenue in 2017
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