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Airlines

Major Airlines Will Have More Ancillary Revenue Than Their Low-Cost Rivals this Year

Dan Peltier

Photo Credit: Southwest touts its Wi-Fi and onboard entertainment for use on travelers mobile devices.  Southwest Airlines

Skift Take

Airlines' total global ancillary revenue, $49.9 billion in 2014, has increased each year since 2010, when total global ancillary revenue was estimated at $22.6 billion, less than half of this year's projection.

Major airlines will likely capture more ancillary revenue than other sectors of the airline industry in 2014. Carriers focusing on a la carte ancillary revenue from more legroom or early boarding will likely drive overall global ancillary revenue this year, more than sales of frequent flyer miles and commissions from hotel recommendations and car rentals. IdeaWorks projects total global ancillary revenue will be $49.9 billion for 2014, 6.7% of the total projected airline revenue of $746 billion. Of the estimated $49.9 billion, $28.5 billion will likely come from a la carte services, while the smaller portion, $21.4 billion, will likely com

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