US airlines report ancillary revenue of $2.1b in Q2

Airlines in the US collected $893 million in baggage fees and $594 million from reservation change fees from April to June, according to the second quarter Airline Financial Data: Network released by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

Published: 23 Sep 2010

Airlines in the US collected $893 million in baggage fees and $594 million from reservation change fees from April to June, according to the second quarter Airline Financial Data: Network released by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

In addition to the fees, airlines reported ancillary revenue of $618 million from passengers and from other sources. This revenue category includes revenue from frequent flyer award programme mileage sales and pet transportation fees.

Total second quarter 2010 airline revenue from all ancillary sources that can be identified, including fees and frequent flyer sales was $2.1 billion, with Delta Air Lines reporting the most, $682 million.

BTS mentione that other fees, such as revenue from seating assignments and on-board sales of food, drink, pillows, blankets, and entertainment are reported in a different category with other items and cannot be identified separately.

Network airlines’ profit margin in the second quarter of 2010 was the largest since the second quarter of 2007, while the combined profit margin for the network, low-cost and regional carrier groups was the highest since the BTS began issuing quarterly airline financial numbers in 2002.

The combined passenger fees and ancillary revenue from other sources constituted six percent of the total revenue of the 28 carriers that reported receiving ancillary revenue.

Spirit Airlines reported the largest percent of operating revenue from ancillary revenue of any carrier, 24.2 percent.

Baggage Fee Collections

Source: Bureau of Transportation Statistics
(US$ in millions)

Delta Air Lines, after completing its merger with Northwest Airlines, reported combined numbers for the first time in the first quarter of 2010.

Reservation Change Fee Collections

Source: Bureau of Transportation Statistics
(US$ in millions)

Ancillary Revenue

Source: Bureau of Transportation Statistics
(US$ in millions)

   

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