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The 2024 CarTrawler Yearbook of Ancillary Revenue, produced by IdeaWorksCompany, highlights significant growth in ancillary revenues across the airline industry, indicating a robust recovery post-pandemic. Total airline revenue reached an unprecedented $918 billion in 2023, driven by a 40% increase in global traffic to 4.2 billion passengers. Notably, ancillary revenues—revenue beyond basic ticket sales, including baggage fees, seat selection, and frequent flyer program income—were boosted by 25.7% year-over-year among the 57 airlines included in both the 2023 and 2024 reports.
Asia-Pacific airlines led traffic growth, with a remarkable 116.2% increase, while U.S. and Canadian carriers experienced more modest growth of around 11.4%. This regional variance reflects the global unevenness in pandemic recovery and the appeal of premium services such as extra legroom and enhanced in-flight amenities.
The top airlines for ancillary revenue included United, Delta, and American, with the U.S. major airlines generating billions through loyalty programs and co-branded credit cards. The total ancillary revenue for the top ten airlines reached $54.1 billion, compared to $38.4 billion in 2019. Low-cost carriers, such as Spirit and Frontier, also demonstrated strong ancillary revenue, representing over 50% of their total income, driven by aggressive pricing on services like baggage and seat upgrades.
For further insights, consult the full report by IdeaWorksCompany, sponsored by CarTrawler.
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