Airline ancillary revenue refers to all income generated from sources other than the base airfare. This includes a wide range of services such as baggage fees, in-flight purchases, seat upgrades, and loyalty program monetization. In 2024, global ancillary revenue is expected to reach $148.4 billion, a 26% increase from 2023’s $117.9 billion and almost $39 billion more than pre-pandemic levels in 2019. Ancillary revenue has become a critical pillar of airline profitability, now accounting for 14.9% of total airline revenue globally. It allows airlines to maintain competitive base fares while…
Breaking Down Airline Ancillary Revenue Streams: What Passengers Really Pay For
