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Ancillary revenues to jump to over 12% of worldwide airline revenues this year and next

17-Sep-2009

Airlines around the world of all shapes and sizes are busy mining the potential of ancillary revenue sources. That is because the lifeblood of the airline industry – ticket sales – are weak and yields are depressed and the outlook for a recovery is not especially promising. IATA this week estimated that USD80 billion in revenues would vanish from global airline industry coffers this year, falling to USD455 billion, or 15% lower than 2008 levels. But a little reported feature in IATA’s forecast is the expectation that “other revenue” (ie non passenger/cargo) would grow by almost 6% this year to around USD56 billion worldwide. [1795 words]

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Subheadings:

  • Ancillaries = profit
  • 12% of total revenue – and rising
  • Ancillary revenue outlook firmer than airline tickets
  • Leading LCCs generating 15% or more of total revenues from ancillary sources

Graphs and data:

  • IATA other revenue: 2001 to 2010F
  • IATA other revenue share: 2001 to 2010F
  • Allegiant Air home page
  • Select carriers’ ancillary revenue as a portion of totally revenues: 2008
  • Select carriers’ ancillary revenue as a portion of total revenues: 2Q2009
  • Allegiant ancillary revenue as a portion of total revenue:  1Q06 to 2Q09
  • easyJet unit revenue figures: Three months ended 30-Jun-09
  • AirAsia ancillary revenue growth and % of total revenue: 1Q2008 to 2Q2009
  • Vueling revenue highlights for three months ended 30-Jun-09
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