Tourism & Cruises

Airline ancillary revenue tops $38 billion in 2014

According to a new report, Spirit Airlines generated $748 million in ancillary revenue in 2014, which amounted to 38.7 percent of its total revenue.
According to a new report, Spirit Airlines generated $748 million in ancillary revenue in 2014, which amounted to 38.7 percent of its total revenue. Sun Sentinel

Extra costs associated with air travel — from baggage fees to extra leg room to car rental commissions — continue to soar, a new report has found.

Ancillary revenue reported by dozens of global airlines jumped to $38.1 billion in 2014, a 20.9 percent increase over the previous year, according to the CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany.

The report, released this week, includes data from 63 airlines that disclose qualifying revenue activity in financial filings. Ancillary revenue includes fees for onboard food sales, baggage and priority boarding; income from the sale of frequent flier miles; commissions from car rentals and the sale of memberships in discount clubs.

United Airlines pulled in the most extra revenue, collecting more than $5.8 billion in 2014. Miramar-based Spirit remained the airline with the largest percent of revenue coming from non-fare sources; 38.7 percent of the low-cost carrier’s total revenue was ancillary.

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