Quick Facts
- Type
- Revenue Category
- Definition
- Revenue from non-ticket sources such as baggage fees, seat selection, onboard...
- Used By
- Airlines
Definition#
Ancillary revenue encompasses all airline income beyond the base ticket fare. It includes checked and carry-on baggage fees, seat selection charges, priority boarding, onboard food and beverage sales, travel insurance, and loyalty program revenue.
Why It Matters Operationally#
For low-cost carriers, ancillary revenue can exceed 40% of total revenue. Legacy carriers increasingly adopt unbundled pricing, and ancillary revenue now materially affects RASM and profitability industry-wide.