News and Research

European Legacy Airlines May Experience Ancillary Pains
Wall Street Journal
Lufthansa will become the first European legacy airline to unbundle services by introducing a three-tier fare system starting from October. This allows the company to compete more directly on the actual fare but also to charge more for non-ticket items like checked bags and seat booking.  Such services incur minimal costs and therefore can add a very profitable revenue stream for airlines. So-called ancillary revenues jumped 21% in 2014 globally from a year earlier, according to industry consultant IdeaWorksCompany and online booking engine CarTrawler.