Tuesday, July 21, 2015

A new study shows non-fare revenue growing
"by every measure," especially among major U. S. carriers.
Extra fees for things like oversized luggage, "last minute"
ticketing, and seats with increased legroom are on the rise at commercial
airlines across the industry, and a new study shows that three major U. S.
carriers are leading the charge. United, American-U. S. Airways, and Delta
were the top three earners of non-fare revenue last year, raking in over $13.
6 billion combined, according to a new report from IdeaWorksCompany and
CarTrawler. The 63 airlines they surveyed earned $38. 1 billion in
ancillary revenue in 2014, reflecting more than a 20 percent increase over the
$31. 5 billion reported in 2013. Though huge gains from "à la carte"
upgrade options that were once a given is the most frustrating part of this
picture for consumers, it should be noted that 2014's increase in passenger
traffic was also a major factor in the revenue bump. Meaning there weren't
just new fees, but more travelers to hit with new fees. Major carriers also
made a lot of money from the sale of miles or points to banks that issue
co-branded credit cards. American Airlines earned $624 million from its
co-branded credit card with Citibank. "Ancillary revenue is an
increasingly important indicator of commercial success, and a major
contributor to the bottom line of airlines across the globe," says Michael
Cunningham, Chief Commercial Officer at CarTrawler. "It is no longer just
the preserve of low cost carriers—it is something from which all airlines
are benefiting. The question is not who is doing it, it's how well it is
being done. " Pretty well, apparently! More good reads from T+L:
• World's Best Airlines
• Coolest All-Inclusive Amenities
• 13 Affordable Trips to Europe Did you enjoy
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Hotels in the Bay Area Extra fees for things like oversized luggage,
"last minute" ticketing, and seats with increased legroom are on the rise
at commercial airlines across the industry. Read on for details.

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