Revenue from non-ticket sources has seen the profit margin of major airline players skyrocket.
Baggage fees, on-board food and drink services has always been a major source of profit for low-cost carriers.
However, it isn’t just budget airlines that are making a mark on their profit margins via ancillary services.
The airline industry, as a whole, is making big business with anything but airfares, with many a carrier exceeding the billion-dollar mark.
This, according to Forbes magazine, is great news for the industry as, due to cutthroat competition, airlines can no longer rely on increasing airfares.
Those that have entered the billion dollar club are United Airlines (US$5.7 billion), Delta (US$2.52 billion) American (US$2.07 billion), Air France/KLM (US$1.71 billion), Ryanair (US$1.68 billion), Southwest ($1.62 billion), easyJet (US$1.38 billion), Lufthansa Group (US$1.28 billion), Qantas (US$1.27 billion), and US Airways (US$1.1 billion).
The total sum, amounting to just over 20 billion, is an exceeding increase from 15.7 billion recorded in 2010.
Ancillary revenue is not only good news for the big airline players.
Spirit Airlines recently recorded that a mammoth 38.4 per cent of its revenue was from ancillary services.
A figure which trumped 58 other airlines.
Other airlines among the top 10 in ancillary revenue as a percentage of total revenue were: Wizz Air (34.9%), Allegiant (32.6%), Jet2.com (27.7%), Ryanair (24.8), Tigerair (23.6%), Jetstar (20.6%), AirAsia X (19.6%), easyJet (19.2%), and AirAsia Group (17.6%).