More than half of the airlines’ revenue does not come from airline tickets. The related services we pay for bring substantial income to them.
The additional services offered by Wizz Air represent 56% of its total revenue. They come from the possibility of choosing a seat on the plane and extra luggage. These are additionally charged by the airlines.
How much do airlines earn from services?
IdeaWorksCompany has produced a report on the ancillary services provided by 75 airlines. Apparently, the passengers brought in $ 34.7 billion in revenue for them. The extra luggage and the ability to choose a seat on the plane provide companies with a substantial profit. In the first year of the pandemic, when demand fell sharply, Wizz Air ranked first.
This is the first time that the company founded in Hungary leads the top. For years, it has been run by North American companies such as Spirit, Viva Aerobus or Allegiant. Of the total revenues, 55.9% were generated from taxes. In 2019, this percentage was 45.4%. The result recorded by Wizz Air it is a world record. It was the highest performance ever recorded by an airline. So far, Viva Aerobus has obtained the highest percentage, this being 47.6%, achieved in 2018.
Ryanair Group ranks seventh with income additional 36.7% of total income. In 2020, ticket prices were lower due to the pandemic. The airlines offered very big discounts. The cost of services in the same period was higher compared to other years.
Other airlines that recorded high percentages of services, after Wizz Air, are Spirit – 55.8%, Viva Aerobus – 52.6% and Allegiant – 51.8%. The fifth place is occupied by Fronteir with 49.2%. Then, the top is completed by Volaris – 42.9%, Ryanair Group – 36.7%, Pegasus – 33.8%, Vietjet Air – 33.4% and Southwest – 27.9%.
So, when you buy a plane ticket you have to take into account the additional costs. Even if the ticket is cheaper you will pay more for extra luggage or a seat on the plane at the window.
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