Global airlines are expected to earn a record $82 billion US this year by charging customers extra for everything from seat assignment to baggage fees to travel commissions.
And Air Canada is among the top ten airlines in the world when it comes to earning this so-called ancillary revenue, racking up nearly $1.18 billion US last year, according to reports from IdeaWorksCompany, a U.S. research company that tracks airline revenue.
IdeaWorksCompany reviewed 138 airlines and examined in detail 66 airlines that publicly disclose extra revenues in their financial filings, which Air Canada did for the first time.
Just over half of Air Canada’s ancillary revenue was from charging for “a la carte” services, such as fees for ticket changes, upgrades, baggage, seat selection, sales of food and beverages, entertainment and wireless internet access, travel commissions and fees charged for purchases made with credit cards. The remaining 45 per cent was earned through the Aeroplan reward program.
Read full story here: Air Canada’s ‘Ancillary’ Fees For Customers Add Up To Big Bucks – Business – CBC News
