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News 21/09/2009 12:35:34 PM   

Ancillary revenues on the rise

 


Airline ancillary revenues rose 346% in 2008 to $US11.25 billion ($13bn), providing relief to carriers hit by declining demand, a report from research firm IdeaWorks has shown.

Qantas emerged as one of the world’s top five airlines for ancillary revenues in the calendar year 2008, making more than $776 million. American Airlines topped the list at $2.79 billion, followed by United Airlines $2 billion and Delta Air Lines $1.9 billion.

The report showed legacy airlines filled the top three positions, spots once occupied by Easyjet and Ryanair.

IdeaWorks said the study, which collated data from 92 airlines, pointed to strong growth in a la carte pricing and frequent flyer programs.

“The Qantas Frequent Flyer program contributes a whopping revenue of $20.10 per passenger (11.87 Euros) – a record among the world’s airlines,” the report said.

US-based Allegiant Air had the highest ancillary revenue as a percentage of its total revenue (22.7%), followed by Ryanair (19.3%).

Jetstar boss Bruce Buchanan said recently that all of Jetstar’s profits come from ancillary revenues, with onboard sales one of the biggest contributors.

21 September 2009


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