Airlines make $40.5 billion in ancillary fees

Carriers are relying more and more on ancillary
Airlines around the world raked in $40.5 billion in additional fees and charges beyond the basic ticket price in 2015, the highest figure ever recorded. $26 billion of this was made by just 10 airlines in the United States, $1 billion more than 2014.
American Airlines was the country’s first major carrier to bring in a checked-baggage fee in 2008, and since then airlines there have increasingly been relying on charges.
The total has gone up every year, according to IdeaWorksCompany, which publishes the CarTrawler Yearbook of Ancillary Revenue. United Airlines was top of the list in 2015 with $6.2 billion in fees, followed by American, then Delta.
Ancillary revenue makes up nearly 9% of all sales, the study found after looking at 67 airlines worldwide. But for low-cost carrier Spirit Airlines it made up more than 43% of its 2015 revenue (baggage fees 18%), followed by Allegiant at 40%.
Airlines’ ancillary revenue now includes the sale of frequent-flier miles and commission on selling extras like hotel and tour packages. And despite extra fees being unpopular, they are not going to go away, as passengers are continuing to pay for them.
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