Delta Air Lines collected $425.7m in ancillary fees in 4Q

The U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported that the airline industry collected at least $1.9 billion through ancillary fees in the fourth quarter of 2009, up 18.3 percent from the fourth quarter of 2008.

Published: 04 May 2010

The U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported that the airline industry collected at least $1.9 billion through ancillary fees in the fourth quarter of 2009, up 18.3 percent from the fourth quarter of 2008.

The ancillary fees constituted 6.5 percent of the total revenue of the 32 carriers that reported receiving ancillary fees.

For the year, the carriers collected $7.8 billion in ancillary fee revenue, compared to $5.5 billion in 2008.

The top three carriers in terms of ancillary fee in 2009 were as follows:

  1. Delta - $1648 million
  2. American - $1002 million
  3. US Airways - $912 millin

Break-up

From October to December, the airlines collected $736 million in baggage fees, $564 million from reservation change fees, and $611 million from other ancillary fees, such as pet transportation fees and frequent flyer award program mileage sales. Revenue from seating assignments and on-board sales of food, drink, pillows, blankets, entertainment, or any other ancillary items are reported in a different category with other items.

Delta Air Lines collected $425.7 million in the fourth quarter ancillary fees, the most of any carrier.

For Delta, its fourth quarter ancillary fees has grown by 47.3 percent over the same period in 2008.

The Department also shared that 21 percent of Spirit Airlines’ operating revenue came from ancillary fees, a larger percent than any other carrier.

In 2009, the airlines collected $2.7 billion in baggage fees, $2.4 billion from reservation change fees, and $2.7 billion from other ancillary fees, such as pet transportation fees and frequent flyer award program mileage sales. Delta collected $1,647.6 million in annual ancillary fees, the most of any carrier.

(Ancillary fees include baggage fees, reservation change fees and miscellaneous operating revenue, including pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees. Revenue from seating assignments and on-board sales of food, drink, pillows, blankets, entertainment, or any other ancillary items are reported as Transport Related Revenue and cannot be identified separately).

Related Reads

comments powered by Disqus