“Ancillary revenues, which represent additional charges for a variety of services, such as schedule changes, in-flight meals and entertainment, checking extra baggage, the purchase of frequent-flyer miles, seat selection, and priority boarding, are a clear-cut way for airlines to boost their profitability, since the associated direct costs are usually either quite low or practically non-existent. Thus, it is no surprise that ancillary revenues have been growing at more than the double the pace of overall industry revenues since 2010, rising by 121%, as opposed to an increase of only 57% for the industry total.”
This report provides an update and outlook concerning trends in the international air transport industry. Airport relations, profitability, as well as trends concerning distribution, fleet development of the major airlines, frequent-flyer programmes and cabin design, are just some of the issues treated in detail in the report. In the conclusion, the report evaluates the possibility of lifestyle branding for airlines and takes a look at the future design of aircraft.
This report looks at the following areas:
Why can’t airlines earn their cost of capital?
How important are ancillary revenues (for example in-flight Wi-Fi, extra luggage, priority boarding, etc)?
What are the trends concerning airline alliances (oneworld, SkyTeam & Star Alliance)?
What are the trends concerning frequent-flyer programmes?
How is the passenger experience evolving?
