Ancillary Revenue

Ancillary revenue for airlines refers to income generated from sources other than ticket sales. It includes any revenue from services or products beyond the base airfare. Since many ancillary items can influence the overall ticket price, it is important that they are managed in coordination with airfare pricing.

revaero has led projects involving the implementation and management of various ancillary revenue streams across multiple airlines, including:

• Baggage Fees – Charges for checked or overweight baggage.
• Seat Selection Fees – Additional charges for selecting preferred seats (e.g., window, aisle, or extra legroom).
• Onboard Sales – Revenue from food, beverages, in-flight entertainment, and duty-free items sold during the flight.
• Change and Cancellation Fees – Charges applied for altering or canceling a booking.
• Frequent Flyer Programs – Income from selling miles or points to credit card companies and other partners.
• Priority Boarding / Upgrades – Fees for early boarding, lounge access, or class upgrades.

Importance to Airlines
Ancillary revenue has become a vital profit center—particularly for low-cost carriers, which keep base fares low and rely on add-ons to drive profitability. Even legacy carriers increasingly depend on ancillary income to improve their margins.

In some cases, ancillary revenue can account for more than 40% of an airline’s total revenue, depending on the business model