The 2025 Yearbook of Ancillary Revenue shows a major industry shift; ancillary revenue rose while fares declined. Airlines such as Frontier (F9), Spirit (NK), and Wizz Air (W6) are leading this change with record breaking revenue percentages.
Covering 61 airlines worldwide, the report highlights that total global ancillary revenue surpassed $148 billion in 2024, a sharp increase from the 2019 record of $109.5 billion.
Low cost carriers (LCCs) continue to dominate this space, with some now earning more from extras like baggage and seat fees than from base fares.
Photo: Spirit AirlinesTop 10 Airlines with Highest Ancillary Revenue
IdeaWorksCompany tracks ancillary revenue, which includes fees for baggage, seats, and loyalty programs, for 61 airlines in 2024.
This revenue stream reached a record $148 billion globally, up from $109.5 billion in 2019, driven by an 8.6% rise in passenger traffic to 4.6 billion.
| 1 | Frontier (F9) | 62.0% | 56.2% | +5.8 points |
| 2 | Spirit (NK) | 58.7% | 56.4% | +2.3 points |
| 3 | Volaris (Y4) | 55.3% | 48.7% | +6.6 points |
| 4 | Breeze (MX) | 54.0% | 51.3% | +2.7 points |
| 5 | Allegiant (G4) | 52.9% | 49.8% | +3.1 points |
| 6 | Wizz Air (W6) | 44.6% | 44.7% | -0.1 points |
| 7 | Viva Aerobus (VB) | 43.7% | 45.5% | -1.8 points |
| 8 | Volotea (V7) | 40.0% | n/a | n/a |
| 9 | easyJet (U2) | 38.6% | 36.1% | +2.5 points |
| 10 | Pegasus (PC) | 33.9% | 30.3% | +3.6 points |
Traditional airlines face pressure from lower fares but gain from ancillary boosts. For instance, a 5.3% per passenger ancillary increase helped counter fare declines.
Low-cost carriers (LCCs) excel in a la carte services, with five airlines now deriving over 50% of revenue from ancillaries, surpassing previous peaks.
High-performing LCCs saw ancillary revenue rise 3.6% per passenger, while their primary passenger fares dropped 5.7%. Other LCCs experienced minimal ancillary growth at 0.6% but saw fares increase 1.4%.
Traditional airlines posted the highest ancillary gain at 5.3% per passenger, against a 6.0% fare drop.
US majors, including Alaska Airlines (AS), American Airlines (AA), Delta Air Lines (DL), Southwest Airlines (WN), and United Airlines (UA), reported 2.4% ancillary growth and a 1.4% fare decline.
Overall, the 58 airlines compared year-over-year showed 2.5% ancillary revenue growth per passenger, contrasted by a 3.8% drop in other revenue, mainly fares.
Basic economy fares spread across carriers, from traditional to LCCs worldwide, mimicking LCC models for quick revenue. However, this shift risks eroding traditional airline distinctions.
Jay Sorensen, President of IdeaWorksCompany, notes that top performers limit larger carry-ons via policies and fees, while applying revenue management to seat pricing based on demand.
Photo: By Johnnyw3 – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=76752468Top Performers in Ancillary Revenue Share
The ranking focuses on ancillary revenue as a percentage of total revenue, elevating LCCs as top a la carte retailers. Loyalty revenue plays a minor role here, despite frequent flyer programs.
Frontier Airlines (F9) topped the list at 62.0%, up 5.8 points from 2023. Spirit Airlines (NK) followed at 58.7%, gaining 2.3 points.
Volaris (Y4) ranked third at 55.3%, with a 6.6-point increase. Breeze Airways (MX) achieved 54.0%, up 2.7 points. Allegiant Air (G4) hit 52.9%, rising 3.1 points.
Wizz Air (W6) placed sixth at 44.6%, slightly down 0.1 points. Viva Aerobus (VB) reached 43.7%, dropping 1.8 points. Volotea (V7) entered at 40.0%, with no prior data. easyJet (U2) scored 38.6%, up 2.5 points.
Pegasus Airlines (PC) closed the top 10 at 33.9%, gaining 3.6 points. These results stem from 12-month financial disclosures.
Photo: Wizz AirNotable Innovations
Frontier Airlines (F9) broke the 60% ancillary threshold, joining four others above 50%. Norse Atlantic Airways (N0) set a record with over $100 ancillary revenue per passenger annually, using branded fares per IdeaWorksCompany recommendations.
Qantas (QF) leads in Australia with 35% consumer credit spending via co-branded cards, underscoring loyalty scheme profits.
US majors generated $28 billion in loyalty revenue, averaging $35.48 per passenger, up from $34.86 in 2023. Sorensen emphasizes that ancillary choices let travelers upgrade for comfort, but basic economy adoption by traditional airlines risks LCC convergence.
Photo: Kevin Hackert | FlickrIndustry Implications
Ancillary revenue offsets fare pressures, with global growth despite traffic gains via discounts.
The report, IdeaWorksCompany’s 18th edition, serves as the key industry reference. Carriers must balance a la carte strategies to sustain revenue without alienating passengers.
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The post Top 10 Airlines with Highest Ancillary Revenue in the World in 2025 appeared first on Aviation A2Z.
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