These Airlines' Ancillary Revenue Reached New Heights in 2024

In 2024, the airline industry achieved a record-breaking $148.4 billion in ancillary revenue, marking a significant increase from previous years.

Low-cost carriers (LCCs) have been pivotal in this growth. For instance, Allegiant Air reported ancillary revenues of $74.02 per passenger in the third quarter of 2024, reflecting a 3% increase from the previous year.

Traditional airlines are also capitalizing on ancillary services. EasyJet's holiday business, relaunched in 2019, saw a 56% increase in pre-tax profits by the end of September 2024, contributing to 31% of the group's total profits.

However, the rise in ancillary fees has drawn regulatory attention. A recent Senate report criticized major U.S. airlines for imposing "junk" fees, leading to higher travel costs and diminished customer experiences.

Despite these challenges, ancillary revenues remain a vital component of airline profitability, with both low-cost and traditional carriers innovating to enhance passenger experiences and diversify income streams.