The 2025 Yearbook of Ancillary Revenue reveals a cashflow shift: ancillary revenue increased while fares dropped.
SHOREWOOD, WISCONSIN -- September 9, 2025 -- The 2025 edition of the Yearbook of Ancillary Revenue by IdeaWorksCompany, released today, describes ancillary revenue activities and results for 61 airlines in 2024, continuing the publication’s role as the industry’s singular voice for 18 years. Key findings include:
- Basic economy is embraced by ever more airlines, ranging from traditional carriers to LCCs all over the world.
- Traditional airlines are under pressure with more traffic but lower fares for 2024. That combination signifies that traffic was gained by deploying discounted fares, but a 5.3% per passenger ancillary revenue increase helped offset the fare drop.
- Total global ancillary revenue surpassed $148 billion for 2024, another new high and well above the 2019 record of $109.5 billion.
- $28 billion in loyalty revenue was posted by the five largest US airlines (Alaska, American, Delta, Southwest, and United) and is powered by co-branded credit cards. This yields an average of $35.48 per passenger for 2024, compared to $34.86 in 2023.
- Frontier broke the 60% ancillary revenue threshold in 2024, and five airlines now generate more cash from ancillary revenue (above 50%) than from passenger fares. Generating 50% of company revenue from ancillary revenue activities was once the peak for this metric.
- Norse Atlantic Airways posted an industry-first result with ancillary revenue above $100 per passenger for a full year. Norse’s approach to branded fares follows the best practice methods recommended by IdeaWorks in its ancillary revenue reports.
- The Qantas co-brand portfolio of cards dominates consumer credit spending in Australia at 35%, representing the bonanza these schemes continue to provide airlines.
The table below ranks airlines by ancillary revenue as a percentage of total airline revenue. This brings low-cost carriers (LCCs) to the top of the ranking and reflects their status as the world’s top retailers of a la carte services. Loyalty revenue is not a major factor, even though most offer a frequent flyer program.
“Joining the top 10 list requires maximum effort to generate big cashflow from two crucial categories: baggage and assigned seats. These airlines focus on limiting larger carry-on bags through policies and fees,” said report author Jay Sorensen, President of IdeaWorksCompany. “Best-performing carriers are also keen to adopt revenue management methods for pricing assigned seats to increase or lower fees based upon consumer demand.”
| Top 10 Airlines – Ancillary Revenue as a % of Total Revenue | ||||
| Rank | Airlines | 2024 Result | 2023 Result | Change from 2023 |
| 1 | Frontier | 62.0% | 56.2% | + 5.8 points |
| 2 | Spirit | 58.7% | 56.4% | + 2.3 points |
| 3 | Volaris | 55.3% | 48.7% | + 6.6 points |
| 4 | Breeze | 54.0% | 51.3% | + 2.7 points |
| 5 | Allegiant | 52.9% | 49.8% | + 3.1 points |
| 6 | Wizz Air | 44.6% | 44.7% | - 0.1 points |
| 7 | Viva Aerobus | 43.7% | 45.5% | - 1.8 points |
| 8 | Volotea | 40.0% | No data | n/a |
| 9 | easyJet | 38.6% | 36.1% | + 2.5 points |
| 10 | Pegasus | 33.9% | 30.3% | + 3.6 points |
| 2024 and 2023 carrier results were based upon 12-month financial period disclosures for each year. Yearbook of Ancillary Revenue by IdeaWorksCompany | ||||
The results in this Yearbook represent the 61 airlines for which IdeaWorks research identified complete or partial elements of ancillary revenue. Total ancillary revenue for carriers in the Yearbook increased significantly for 2024, which is expected when estimated global passenger traffic grew 8.6% to 4.6 billion passengers. The 58 airlines which also appeared in last year’s edition comprise the data for year-overyear comparisons.
The table on the following page displays the changes associated with “total ancillary revenue” and “all other revenue” on a per passenger basis. “All other revenue” represents the bulk of company revenue from sources such as passenger tickets, cargo, and revenue from services sold to other airlines such as maintenance and ground handling. However, the largest share is passenger revenue.
The table also displays the share of carriers in each category that posted increases for ancillary revenue and all other revenue. It’s important to note that ancillary revenue advanced globally by 2.5% on a per passenger basis, while passenger fare revenue saw a decrease, as demonstrated by the -3.8% “all other revenue” result for the 58 airlines.
| 2024 Change Over 2023 – Per Passenger Results Same set of 58 airlines appearing in current and prior Yearbook editions | ||
| Airline Categories | Ancillary Revenue | All Other Revenue (primarily passenger fares) |
| High Performing LCCs | 3.6% | -5.7% |
| Other LCCs | 0.6% | 1.4% |
| Traditional Airlines | 5.3% | -6.0% |
| US Majors | 2.4% | -1.4% |
| All 58 Airlines | 2.5% | -3.8% |
| 2024 and 2023 carrier results were based upon 12-month financial period disclosures for each year. Airlines by category: High performing LCCs; 20, Other LCCs; 15, Traditional; 18, US Majors; 5. Yearbook of Ancillary Revenue by IdeaWorksCompany | ||
“You get what you pay for, is an ancient pearl of wisdom for both consumers and airline managers,” said Jay Sorensen. “The à la carte choices presented by the ancillary revenue movement have encouraged travelers to upgrade to more comfort and convenience. Basic economy fares are designed to mimic low-cost carriers. While this provides a fast revenue boost, it also makes traditional airlines more like LCCs, which is a metamorphosis that is not without peril.”
The 2025 Yearbook of Ancillary Revenue by IdeaWorksCompany was released today as a Pro Series Report and is available for sale at the IdeaWorks bookstore for $650: https://ideaworkscompany.com/store/
About IdeaWorksCompany
IdeaWorksCompany boosts airline profits through innovations in ancillary revenue, a la carte pricing, loyalty marketing, and airline retail. The firm was founded in 1996 and has an international client list of airlines and other travel industry firms in Asia, Europe, the Middle East, and the Americas. IdeaWorksCompany enjoys a reputation as the leading global resource for ancillary revenue strategy, on-site executive workshops, and research reports. Learn more at https://ideaworkscompany.com/
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