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Indian airlines begin to charge ancillary fees for first time
TransportIndian airlines, like their peers in the US and Europe, will now be able to charge for check-in baggage and seats of choice. Civil Aviation Minister Ajit Singh today allowed domestic airlines to charge fees for preferential seats and use of lounges, among other things, opening for them additional revenue streams. In its statement, the [...]
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Airlines need to become better digital retailers, and their own sites are best weapons
TransportThere is a constant push and pull between airlines saying the GDS cannot support ancillaries and GDSs saying they can. A more accurate judgment may be that GDSs generally do accommodate ancillaries but in a clunky and limited fashion. Full-service airlines are increasingly adopting LCC elements, with demands for GDSs to support ancillaries. Even the [...]
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In-flight meal upgrades: Passenger privilege or another ancillary fee?
TransportIt is a commonly held view that “complimentary” inflight meals rarely impress. Virtually every passenger has something to say about airplane food and the bad seems to outweigh the good. It would seem an obvious solution for this airline to offer a better quality meal in the form of a pre-ordered ‘a la carte’ menu [...]
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Behind the fee hikes that drove stellar profits for U.S. airlines in 2012
TransportFrequent flyers will tell you that airlines are increasing the number and cost of fees on what feels like an everyday basis. Their frustrations were validated when IdeaWorks announced that airlines had received an estimated $36.1 billion in revenue from ancillary services in 2012. This was a whopping 11 percent increase over 2011. Which fee changes [...]
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Wondering what to expect from air travel in 2013? Higher fares, more fees, less options
TransportWell, that didn’t take long. Just four days into the new year, United Airlines and its Star Alliance partner Air Canada have launched the first attempted airfare increase of 2013. The carriers are attempting to hike more than 1 million fares across their system, reports Rick Seaney, airfare analyst and CEO of FareCompare.com. The increase is between [...]
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EasyJet posts record profits thanks to down economy and better options for business travelers
TransportEasyJet has registered record profits as fuller planes, benign weather and cost-conscious business travellers saw the airline’s revenues surge. Chief executive Carolyn McCall said EasyJet was in “a unique position to grow” against longer established rivals such as British Airways and that the board’s increased confidence meant that they would be paying out a higher [...]
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Airlines aren’t the only travel industry making their profit from ancillary fees
TransportThe global airline industry is expected to pocket more than $36 billion in passenger fees this year, including charges to check bags, connect to onboard Wi-Fi and purchase food and drinks. That represents about 5.4 percent of the industry’s overall revenue. But a company that helps maximize airlines’ fees noted in a study last week [...]
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Flyers brace yourself: Federal study predicts current airline trends are here to stay
TransportAmid rising consumer complaints about the quality and cost of airline service, a federal study forecasts passengers are not likely to see significant improvements in the years ahead. “Aviation Industry Performance: A Review of the Aviation Industry, 2008-2011,” released by the Department of Transportation’s Office of Inspector General on Sept. 24, finds U.S. airlines are [...]
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Airlines begin planning for the next generation of profit-driving fees
TransportThe amount airlines are pocketing on passenger fees continues to rise, prompting the question: What new fees can carriers think up?
The world’s biggest airlines are expected to collect $36.1 billion in passenger fees in 2012 _ including charges to chec…
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Ancillary fees boost Allegiant Air’s earnings despite drop in airfare and passengers
TransportLas Vegas-based Allegiant Travel Co., which operates Allegiant Air, reported record third-quarter earnings, boosted by greater passenger capacities, new routes to Hawaii and lower operational costs. The company said today that it had net income of $16.9 million, or 87 cents a share, on revenue of $216.9 million. That compares to $9.5 million, or 49 [...]
