Summary
- The top three US legacy carriers (American, Delta, and United) generated the highest ancillary revenue in 2022.
- US LCCs, such as Southwest and Spirit, also saw significant ancillary revenue growth.
- Non-US carriers, like Ryanair and easyJet, also made it into the top 10.
Anyone who has flown in the last few years may have noticed that ancillary fees are rising in the commercial aviation industry. As carriers look to recover from the impacts of the coronavirus pandemic, these added extras offer a consistent stream of additional revenue that quickly adds up. But which airline types make the most money off the back of these? A recent study by CarTrawler reveals all.
US legacy carriers
The ‘big three’ US legacy carriers, namely American Airlines, Delta Air Lines, and United Airlines, represent one of the industry’s significant rivalries. These carriers are among the world’s largest in metrics such as fleet size, network, and workforce, so it isn’t much of a surprise to see them in the top three of CarTrawler’s study.
What is particularly interesting is that while these three carriers are billions of dollars ahead of any other airline in terms of ancillary revenue generated in 2022, they are nearly neck and neck. Delta Air Lines sits at the top of the pile, with a 2022 total of $7,987,111,000 in ancillary revenue, 37% higher than in 2021.
Photo: BravoKiloPhoto/Shutterstock
Not far behind in second place is United Airlines, with total ancillary revenues of $7,881,371,000 last year. The carrier saw even greater year-on-year growth in this regard, with its total rising by 44.1% compared to 2021. Completing the podium, we have American Airlines, whose figure rose by 30.8% to $7,711,216,000.
American budget airlines
Generally speaking, ancillary fees are the sort of thing that you might associate with low-cost carriers, with the expectation being that you get more for your money at full-service carriers. While the US big three likely ended up at the top of the list due to their sheer size, fourth place sees budget airlines enter the fold.
Specifically, sitting in this position is Southwest Airlines, whose 2022 ancillary revenue total of $5,941,000,000 was 43.7% higher than the previous year. However, CarTrawler does point out that at least 80% of this came from the carrier’s frequent flyer program, which makes sense, given that Southwest generally includes more chargeable items (such as checked baggage) for free than its competitors.
Photo: Denver International Airport
Fellow US-based budget carrier Spirit Airlines saw even more significant growth in terms of its yearly ancillary revenue totals, with 2022’s figure being some 49% higher than in 2021. All in all, it rose from $1,752,875,000 to $2,612,630,000, with this most recent total seeing the yellow-clad ultra-low-cost carrier rank sixth.
Outside the US
It is worth noting that not all of the world’s largest airlines by ancillary revenues are based in the US. Indeed, three non-US carriers feature in the top 10, with European low-cost giant Ryanair placing fifth. The Irish budget carrier registered a total of $4,002,983,357, representing a 57.1% increase compared to 2021.
Fellow European budget airline easyJet ranked seventh and saw the most intense growth in the top 10, with its most recent yearly total of $2,353,524,353 being some 273% higher than in 2021. These two low-cost operators aside, the only other non-US carrier in the top 10 was Air Canada. With a 112.1% year-on-year increase and total ancillary revenues of $1,975,197,146, this placed the airline 10th.
Source: CarTrawler