Primary Economic system and Ancillary Income Drive Airline Earnings in 2024

The 2025 Yearbook of Ancillary Income reveals a cashflow shift: ancillary income elevated whereas fares dropped.

SHOREWOOD, WISCONSIN — September 9, 2025 — The 2025 version of the Yearbook of Ancillary Income by IdeaWorksCompany, launched in the present day, describes ancillary income actions and outcomes for 61 airways in 2024, persevering with the publication’s function because the {industry}’s singular voice for 18 years. Key findings embody:

Primary economic system is embraced by ever extra airways, starting from conventional carriers to LCCs all around the world.

Conventional airways are beneath strain with extra site visitors however decrease fares for 2024. That mixture signifies that site visitors was gained by deploying discounted fares, however a 5.3% per passenger ancillary income enhance helped offset the fare drop.

Whole world ancillary income surpassed $148 billion for 2024, one other new excessive and nicely above the 2019 document of $109.5 billion.

$28 billion in loyalty income was posted by the 5 largest US airways (Alaska, American, Delta, Southwest, and United) and is powered by co-branded bank cards. This yields a median of $35.48 per passenger for 2024, in comparison with $34.86 in 2023.

Frontier broke the 60% ancillary income threshold in 2024, and 5 airways now generate additional cash from ancillary income (above 50%) than from passenger fares. Producing 50% of firm income from ancillary income actions was as soon as the height for this metric.

Norse Atlantic Airways posted an industry-first outcome with ancillary income above $100 per passenger for a full yr. Norse’s method to branded fares follows the most effective follow strategies advisable by IdeaWorks in its ancillary income reviews.

The Qantas co-brand portfolio of playing cards dominates shopper credit score spending in Australia at 35%, representing the bonanza these schemes proceed to offer airways.

The desk under ranks airways by ancillary income as a proportion of complete airline income. This brings low-cost carriers (LCCs) to the highest of the rating and displays their standing because the world’s high retailers of a la carte companies. Loyalty income is just not a significant factor, regardless that most supply a frequent flyer program.

“Becoming a member of the highest 10 listing requires most effort to generate large cashflow from two essential classes: baggage and assigned seats. These airways give attention to limiting bigger carry-on luggage by insurance policies and charges,” stated report creator Jay Sorensen, President of IdeaWorksCompany. “Greatest-performing carriers are additionally eager to undertake income administration strategies for pricing assigned seats to extend or decrease charges based mostly upon shopper demand.”

High 10 Airways – Ancillary Income as a % of Whole Income
Rank	Airways	2024 Outcome	2023 Outcome	Change from 2023
1	Frontier	62.0%	56.2%	+ 5.8 factors
2	Spirit	58.7%	56.4%	+ 2.3 factors
3	Volaris	55.3%	48.7%	+ 6.6 factors
4	Breeze	54.0%	51.3%	+ 2.7 factors
5	Allegiant	52.9%	49.8%	+ 3.1 factors
6	Wizz Air	44.6%	44.7%	– 0.1 factors
7	Viva Aerobus	43.7%	45.5%	– 1.8 factors
8	Volotea	40.0%	No information	n/a
9	easyJet	38.6%	36.1%	+ 2.5 factors
10	Pegasus	33.9%	30.3%	+ 3.6 factors
2024 and 2023 provider outcomes had been based mostly upon 12-month monetary interval disclosures for annually. Yearbook of Ancillary Income by IdeaWorksCompany

The outcomes on this Yearbook characterize the 61 airways for which IdeaWorks analysis recognized full or partial parts of ancillary income. Whole ancillary income for carriers within the Yearbook elevated considerably for 2024, which is predicted when estimated world passenger site visitors grew 8.6% to 4.6 billion passengers. The 58 airways which additionally appeared in final yr’s version comprise the info for year-overyear comparisons.

The desk on the next web page shows the modifications related to “complete ancillary income” and “all different income” on a per passenger foundation. “All different income” represents the majority of firm income from sources similar to passenger tickets, cargo, and income from companies offered to different airways similar to upkeep and floor dealing with. Nonetheless, the most important share is passenger income.

The desk additionally shows the share of carriers in every class that posted will increase for ancillary income and all different income. It’s vital to notice that ancillary income superior globally by 2.5% on a per passenger foundation, whereas passenger fare income noticed a lower, as demonstrated by the -3.8% “all different income” outcome for the 58 airways.

2024 Change Over 2023 – Per Passenger Outcomes Similar set of 58 airways showing in present and prior Yearbook editions
Airline Classes	Ancillary Income	All Different Income (primarily passenger fares)
Excessive Performing LCCs	3.6%	-5.7%
Different LCCs	0.6%	1.4%
Conventional Airways	5.3%	-6.0%
US Majors	2.4%	-1.4%
All 58 Airways	2.5%	-3.8%
2024 and 2023 provider outcomes had been based mostly upon 12-month monetary interval disclosures for annually. Airways by class: Excessive performing LCCs; 20, Different LCCs; 15, Conventional; 18, US Majors; 5. Yearbook of Ancillary Income by IdeaWorksCompany

“You get what you pay for, is an historic pearl of knowledge for each shoppers and airline managers,” stated Jay Sorensen. “The à la carte decisions offered by the ancillary income motion have inspired vacationers to improve to extra consolation and comfort. Primary economic system fares are designed to imitate low-cost carriers. Whereas this offers a quick income enhance, it additionally makes conventional airways extra like LCCs, which is a metamorphosis that isn’t with out peril.”

The 2025 Yearbook of Ancillary Income by IdeaWorksCompany was launched in the present day as a Professional Sequence Report and is out there on the market on the IdeaWorks bookstore for $650: