Customer Fees Bring in $27 Billion for Airlines
Geo Beats
2013-09-24
Views 215
By charging for everything from pillows to legroom, airlines around the world brought in an extra 27 billion dollars in 2012.
By charging for everything from pillows to legroom, airlines around the world brought in and extra 27 billion dollars in 2012.
Selling the little extras, many of which used to come with the cost of the fare, now account for roughly 20% of carriers’ revenue.
Airlines that are more aggressive about charging for the little things have higher reported income percentages.
Spirit Airlines rakes in about 38 percent of its revenue by passing expenses like credit card fees onto its customers.
They also instituted a carry-on luggage fee of 100 dollars.
On most airlines, travellers will spend about 30 dollars a piece for perks like food, Wi-Fi, and additional baggage.
In that category Australia’s Quantas Airways was the clear leader, with an average of 56 dollars per flier.
The list of a-la-carte flight options continues to grow. Comfier seats, early boarding privileges, and traveling with an infant are all current fee-bearing options for one carrier or another.
The 27 billion dollar figure isn’t all from passengers, though. The figure also includes airline miles sold to partners like hotels and car rental agencies.
By charging for everything from pillows to legroom, airlines around the world brought in and extra 27 billion dollars in 2012.
Selling the little extras, many of which used to come with the cost of the fare, now account for roughly 20% of carriers’ revenue.
Airlines that are more aggressive about charging for the little things have higher reported income percentages.
Spirit Airlines rakes in about 38 percent of its revenue by passing expenses like credit card fees onto its customers.
They also instituted a carry-on luggage fee of 100 dollars.
On most airlines, travellers will spend about 30 dollars a piece for perks like food, Wi-Fi, and additional baggage.
In that category Australia’s Quantas Airways was the clear leader, with an average of 56 dollars per flier.
The list of a-la-carte flight options continues to grow. Comfier seats, early boarding privileges, and traveling with an infant are all current fee-bearing options for one carrier or another.
The 27 billion dollar figure isn’t all from passengers, though. The figure also includes airline miles sold to partners like hotels and car rental agencies.
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