Ancillary revenues grew to an estimated $36 billion in 2012 representing just over 5% of revenues. US majors are now generating 10-12% of their revenues from ancillaries compared to 20% by some airlines and 3% for the average network airlines. In the U.S. the majority of ancillary revenue comes from the sale of FFP miles, onboard services and baggage, products that are much less developed in other markets.
The panel discussed the economics of ancillaries and how they have evolved. It will also consider customer response to ancillaries and discuss the barriers to selling theses products, including the threat of intervention by regulators into this evolving marketplace.