Ancillary revenue up by nearly 20% in 2012

Ancillary revenue up by nearly 20% (Christian Ghe on flickr)IdeaWorksCompany and Cartrawler recently published that reported airline ancillary revenue is up by 19.6% to $27.1 billion in the CarTrawler Review of Ancillary Revenue Results for 2012.

IdeaWorksCompany found from 53 of 116 airlines of which disclose ancillary revenue activity, that ancillary revenue reported grew to $27.1 billion in 2012. This represents a 101 percent increase of the ancillary revenue of 2009.

The 2011 results posted by 50 airlines was $22.6 billion in ancillary revenue. The top airlines for total ancillary revenue include United, Delta, America, Southwest and Qantas in the top 5.

It seems more companies are reporting their ancillary revenues and their approach to ancillary revenue. IdeaWorksCompany found that:

  • Vueling generates ancillary revenue through the licensing of its brand to a hotel in Barcelona, Hotel Vueling BCN by HC (Hoteles Catalonia). The hotel opened March 2013.
  • Norwegian owns part of Norwegian Finans Holding ASA which operates as Bank Norwegian. During 2012 the bank paid commissions of NOK 40,049,000 ($6.9 million) for activity related to the Bank Norwegian Visa card.
  • Economy comfort seating on KLM contributes €65 million annually on its transcontinental routes.

To see the full report from IdeaWorksCompany and CarTrawler, click here.

What do you think? It's great that reported ancillary revenue is up. How do you feel about the approaches to ancillary revenue?

Blue Sky provides the latest content for traditional and low cost carriers and their investors. To get this content directly to you, click here to subscribe to our enewsletter. It's free and only takes a moment.

The World Low Cost Airlines Congress will have representatives from Vueling, Norwegian and KLM attending. Click the banner below to find out more.

WLCA 604x105 static