Ancillary revenues to total USD23bn in 2010 and set to triple
Ancillary revenue is becoming a hot topic in the airline industry with airlines now reliant on ancillaries after two years of using them to first, overcome high fuel prices, and then slumping revenues and yields. Ancillary revenues are expected to continue to rise as a proportion of total revenue as airlines become increasingly sophisticated about these new revenue streams, with network carriers also embracing the opportunities, meaning ancillary revenues are no longer the domain of the LCC. As AirAsia CEO Tony Fernandes recently commented: “We’ve only just scratched the surface.”