cartrawler: Top Ten Airlines Generated $29.7 Billion from Ancillary Revenue in 2017
Every year IdeaWorksCompany searches for disclosures of financial results which qualify as ancillary revenue for airlines all over the globe. Annual reports, investor presentations, financial press releases, and quotes attributed to senior executives all qualify as sources in the data collection process.
These results are contained in the new report, 2017 Top 10 Airline Ancillary Revenue Rankings. Of the 143 airlines reviewed, 72 reveal figures related to ancillary revenue. The following is a sampling of the 2017 financial year results found in the report:
- Back in 2007 the top ten airlines, as rated by total ancillary revenue, generated $2.1 billion. Fast forward to 2017 and the top ten tally has experienced a 14-fold increase.
- Top “% of revenue” producers by global regions: Wizz Air 41.6% (Europe & Russia), Spirit 46.6% (Americas), and Hong Kong Express 25% (Asia & South Pacific).*
- Qantas Loyalty achieved revenue in excess of AUD $1.5 billion (nearly $1.16 billion) for fiscal year 2017; that’s a notable $98 per member or almost $39 per passenger.
- Top “ancillary revenue per passenger,” mostly from a la carte activities, by global regions: WOW air $48.87 (Europe & Russia), Spirit $50.97 (Americas), and AirAsia X $33.12 (Asia & South Pacific).*
“Ancillary revenue keeps on growing and has become a mandatory component for the revenue mix of all airlines. Investors were first delighted by it, and now have come to expect it. That expectation also occurs with consumers who appreciate the flexibility and array of services delivered by airlines. The best producing airlines have become expert retailers of travel-related services, which includes the ability to book hotels, attractions, and of course ground transport,” said Michael Cunningham, Senior Vice President of Distribution at CarTrawler.
To view results for the top ten airlines in three categories (overall ancillary revenue, as a percentage of company revenue, and on a per passenger basis), please click here for the free to download 14-page report.
The results for all 72 disclosing airlines will be released in September 2018 as the 11th annual CarTrawler Yearbook of Ancillary Revenue by IdeaWorksCompany (100+ pages). A companion release, scheduled for November 2018, will use these results to extrapolate total ancillary revenue generated by 180 airlines around the world.