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

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.

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