American Airlines Says Premium Seats Will Be the Next Frontier in Ancillary Fees


Skift Take

Hyperbole or reality? American Airlines thinks its upcoming basic and premium economy will be huge, akin to its launching bag fees in 2008.
In 2008, American Airlines introduced a $15 fee for a first-checked bag, new territory for a legacy carrier although Ryanair, which might be considered "the Godfather of ancillary revenue," had already been at it tacking on fees for years. The introduction of fees for everything from checked bags to early boarding and preferred seats has transformed the global aviation industry in the interim. In November 2015, IdeaWorks Co. projected that global airlines would generate $59.2 billion in fees in 2015, an 18.8 percent increase over 2014, and $36.7 billion of that would be for a la carte services such as checked bags, preferred seats, Wi-Fi and me