Airline ancillary revenues

David Warnock-Smith

A chapter in Elgar Encyclopedia of Transport and Society, 2025, pp 28-29 from Edward Elgar Publishing

Abstract: The airline sector is notorious for generating perennially low returns. It is in this context that the sale of non-core ancillary products has represented a lifeline for the world's airlines, particularly since the low-cost carrier revolution starting in the 1980s. This entry summarises the airline sector's growing reliance on the sale of ancillary products and finds that, over time, the product focus between unbundled, trip-related and loyalty-related ancillary categories has differed by airline business model and world region. North American carriers generate much higher loyalty-related revenues, and low-cost carriers are typically much more dependent than full-service airlines on the sale of unbundled products.

Keywords: Airline ancillary revenues; E-commerce; Personalisation; Unbundled products; Trip-related products; Loyalty related products (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035330515
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