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Airline ancillary revenue falls in 2020 Airline ancillary revenue falls in 2020

Airline Ancillary Revenue Falls to USD58,2 Billion in 2020

IdeaWorksCompany, the foremost consultant on ancillary revenue, and CarTrawler, one of the leading provider of online car rental distribution systems, project airline ancillary revenue will drop to USD58,2 billion worldwide in 2020, compared to USD109,5 billion in 2019.  

The CarTrawler Worldwide Estimate of Ancillary Revenue represents a 47 percent decrease, dropping slightly below the USD59,2 billion amount for 2015. 

 Earlier this year, CarTrawler and IdeaWorksCompany reported the ancillary revenue disclosed by 81 airlines for 2019.  These statistics were applied to a larger list of 134 airlines to provide a truly global projection of ancillary revenue activity by the world’s airlines for this year. This marks the eleventh year IdeaWorksCompany has prepared a projection of ancillary revenue activity.

 Ancillary revenue is generated by activities and services that yield cashflow for airlines beyond the simple transportation of customers from A to B.  This wide range of activities includes commissions gained from hotel bookings, the sale of frequent flyer miles to partners, and the provision of a la carte services − providing more options for consumers and more revenue for airlines.

 The continued power of ancillary revenue, even during unprecedented airline industry upheaval, becomes obvious when viewing the graph below.  The average fare presented by the International Air Transport Association (IATA) shows a declining trend with a significant drop projected for this year.