INTERNATIONAL. A new report by travel and aviation consultancy IdeaWorks underlines the vital role of ancillary revenues to airlines. The new 2011 Amadeus Yearbook of Ancillary Revenue by IdeaWorks, now available free online, provides a comprehensive insight into the ancillary revenues business, which was worth €15.11 billion in 2010, as we reported in May.
The full 64-page report examines 47 airlines that disclose revenue including a la carte features, commission-based products, frequent flier activities, inflight sales plus advertising.
The €15.11 billion figure represents ancillary revenue growth of +38% over 2009 and +96% since 2008. United, Continental, Delta, American and Qantas were the airline world’s top ancillary revenue carriers for 2010, with their revenues buoyed in particular by baggage fees and co-branded credit cards.
The Yearbook’s individual airline listings clarify the type of ancillary revenue activity for each carrier.
The following is a sample of the ancillary revenue details found in the Yearbook:
• Air Berlin: The carrier earned more than €38 million from inflight and duty free sales during 2010.
• Allegiant Airlines: Receipts from third party sources, such as hotel accommodations and rental cars, produced net revenue of US$24 million (€16.9 million) in 2010 with a pre-tax margin of 24%.
• Emirates: Excess baggage charges delivered AED293 million (€56 million) for the fiscal year ended 31 March 2011.
• Hainan Airways The sale of frequent flier miles in its Fortune Wings Club provided more than CÂ¥38.9 million (€4.2 million) for 2010.
• JetBlue The “Even More Legroom” a la carte seating feature generated more than US$85 million (€60 million) of revenue in 2010.
• South African Airways: Its Voyager frequent flier program contributed R362 million (€36.9 million) during the fiscal year ended 31 March 2010.
• US Airways: Choice Seats, where consumers pay more to get a better seat in economy, provided US$30 to US$40 million (€21 to €28 million) in revenue during 2010. The carrier estimates this could be US$200 to US$300 million (€141 to €211 million) once it is sold through all distribution channels.
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The report underlines the growing role that ancillary revenues play in airlines’ balance sheets |
The 2011 Amadeus Yearbook of Ancillary Revenue by IdeaWorks was released today as a free-of-charge report sponsored by Amadeus. The full report is available at the IdeaWorks web site: www.IdeaworksCompany.com/news
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The Yearbook details airlines’ ancillary revenue contributions as a percentage of total income |
