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24-Jul-2012 11:35 AM

Airline ancillary revenue up 21% in 2011

IdeaWorksCompany and Amadeus jointly released (23-Jul-2012) their airline ancillary revenue report for 2011, showing airline ancillary revenue increasing by 20.6% year-on-year to EUR18.2 billion (USD22.6 billion). 2011 results were based on ancillary revenue from 50 carriers while 2010 results were based on ancillary revenue for 47 carriers. Southwest replaced Emirates for a place in the top 10 carriers in terms of total ancillary revenue. Details include:

  • Ancillary revenue: EUR18,230 million, +20.6% year-on-year;
    • United Continental: EUR4163 million, +17.9%;
    • Delta: EUR2040 million, -21.9%;
    • American Airlines: EUR1701 million, +23.3%;
    • Qantas Airways: EUR1142 million, +5.0%;
    • Southwest: EUR949.9 million, +13.8%;
    • easyJet: EUR890.1 million, +11.0%;
    • Ryanair: EUR886,200, +35.3%;
    • US Airways: EUR874.2 million, +105%;
    • TAM Airlines: EUR537.3 million, +37.8%;
    • Alaska Air Group: EUR491.1 million, +36.6%;
  • Ancillary revenue as percentage of total revenue:
    • Spirit: 33.2%, +4.0 ppts;
    • Jet2.com: 27.1%, +4.5 ppts;
    • Allegiant: 27.0%, +4.9 ppts;
    • easyJet: 20.8%, -0.2 ppt;
    • Ryanair: 20.5%, stable;
    • Tiger Airways: 19.1%, -0.1 ppt;
    • AirAsia Group: 17.8%, -0.9 ppt;
    • Flybe: 17.0%, -1.1 ppt;
    • AirAsia X: 16.5%, +0.8 ppt;
    • Jetstar: 15.3%, +0.6 ppt;
  • Ancillary revenue per passenger:
    • Qantas Airways: EUR40.91, +38.9%;
    • Spirit: EUR33.61, +28.1%;
    • Jet2.com: EUR33.30, +37.4%;
    • AirAsia X: EUR30.79, +27.2%;
    • United Continental: EUR29.36, +26.6%;
    • Allegiant: EUR27.37, +54.1%;
    • Alaska Air Group: EUR19.81, +12.1%;
    • Jetstar: EUR18.80, +11.8%;
    • Aer Lingus: EUR17.73, +10.4%;
    • Flybe: EUR17.65, +18.9%. [more – original PR]

Amadeus: “We’ve seen the industry move swiftly to grasp some clear opportunities for providing ancillary services, such as baggage fees, extra legroom and on-board catering. The next wave of innovation in ancillary services will come from those airlines which develop new products that support their brand positioning and deliver value to the traveller by meeting their individual needs and preferences,” Holger Taubmann, senior VP distribution. Source: Company statement, 23-Jul-2012.