Airline revenues from theatre and car hire lift off
Selling theatre tickets for musicals Les Miserables and Wicked is not normally associated with the airlines. But as the oil price has risen and fares stay competitive, ancillary revenues are becoming essential to the airline business model. “2018 may well be a defining moment in aviation as airlines begin to report more revenue from their retailing than the cost of the initial air ticket,” said John Grant, partner at consultancy Midas Aviation. Ancillary revenues have soared in the decade to 2017. The top 10 global airlines, ranked by total ancillary revenue, increased them from US$2.1b to $29.7b in the 10 years to 2017. Grant cited ultra-low-cost carriers such as Spirit Airlines, where ticket revenue for 2017 was $328m and non-ticket revenue was $329m, as an example where this trend towards emphasis on ancillary revenues is accelerating. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-07-30/general/airline-revenues-from-theatre-and-car-hire-lift-off
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Airline revenues from theatre and car hire lift off
Selling theatre tickets for musicals Les Miserables and Wicked is not normally associated with the airlines. But as the oil price has risen and fares stay competitive, ancillary revenues are becoming essential to the airline business model. “2018 may well be a defining moment in aviation as airlines begin to report more revenue from their retailing than the cost of the initial air ticket,” said John Grant, partner at consultancy Midas Aviation. Ancillary revenues have soared in the decade to 2017. The top 10 global airlines, ranked by total ancillary revenue, increased them from US$2.1b to $29.7b in the 10 years to 2017. Grant cited ultra-low-cost carriers such as Spirit Airlines, where ticket revenue for 2017 was $328m and non-ticket revenue was $329m, as an example where this trend towards emphasis on ancillary revenues is accelerating. <br/>
