Airlines' US$57b question: Is there anything left to charge passengers for?
US carriers began charging passengers to check their luggage about a decade ago, as fuel costs surged. Since then airlines started charging for other things, such as seat selection, which once came with the cost of a ticket, along with add-ons like early boarding. Air travellers paid an estimated US$57b in such add-ons last year , nearly triple the sum airlines collected 5 years earlier, according to airline research firm IdeaWorks Company. Airlines are now shifting their focus on how to generate more from the existing fees and products beyond the base fare of a ticket than coming up with brand-new things to charge for, industry members say. Ancillary revenue is key to airlines' bottom lines they struggle with a profit-crimping rise in fuel costs. Ancillary revenue are close to 11% of airlines' revenue, up from about 5% in 2010. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-09-10/general/airlines-us-57b-question-is-there-anything-left-to-charge-passengers-for
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Airlines' US$57b question: Is there anything left to charge passengers for?
US carriers began charging passengers to check their luggage about a decade ago, as fuel costs surged. Since then airlines started charging for other things, such as seat selection, which once came with the cost of a ticket, along with add-ons like early boarding. Air travellers paid an estimated US$57b in such add-ons last year , nearly triple the sum airlines collected 5 years earlier, according to airline research firm IdeaWorks Company. Airlines are now shifting their focus on how to generate more from the existing fees and products beyond the base fare of a ticket than coming up with brand-new things to charge for, industry members say. Ancillary revenue is key to airlines' bottom lines they struggle with a profit-crimping rise in fuel costs. Ancillary revenue are close to 11% of airlines' revenue, up from about 5% in 2010. <br/>
