Airlines revenue rises an additional 31.5 billion in 2013

The additional revenue for airlines grew to $13.5 billion at the end of last year, compared to $27.1 billion in 2012.

Corporate incremental revenue is defined as that from non-technical business, such as excess baggage fees, car and hotel reservations, as well as the sale of loyalty program miles.

The annual IdeaWorks report indicates that since 2007, the additional revenues of companies have grown by a large percentage, amounting to 1200%, from $2.4 billion to reach 31.5 billion in 2013, which reflects the great interest that airlines attach to this income, especially that the profitability of the traveler does not exceed 6 dollars.

The report indicated that the average traveler spent on these revenues amounted to 16 dollars, and fees for bags and the sale of air miles represented the largest share of these revenues for more than 59 companies.

In terms of the average traveler’s spending on these revenues, Jet2 came first at a rate of $55.6 per passenger, followed by Spirit with $51.2, and then Australia’s Qantas at $45.6 per passenger.

The American company United came first in terms of total additional revenues, with sales amounting to 5.7 billion dollars, followed by the American Delta with 5.2 billion dollars, and then American Airlines with 2 billion dollars, and among the ten largest companies in the world in this field, there are 5 American companies.

Australia’s Qantas is the world’s most successful selling air miles, contributing more than 80% of its additional sales of $1.2 billion.

Low-cost airlines are very active in sales of additional revenues, as they contribute more than 38.4% of the total revenues for a company such as Spirit Airlines, and by 34.9% for the European Wizz Air and 32.6% for the Allegiant Company.

Baggage fees make up more than 40% of the additional revenue and distribute the rest to seat selection, miles sale, and food and drink.

Companies like United are also turning to co-branded credit cards, whose sales grew 35% over the past year, compared to sales of $2.9 billion from the sale of air miles under its Mileage Plus programme.