Airlines rake in billions from frills

Carriers like Air New Zealand are increasingly embracing revenue from add-on services. (Image: Getty)

Mon, 02 Oct 2023

As airlines bounce back to pre-covid pandemic profitability on the back of pent-up travel demand, new data shows not just fares are fattening their bottom lines. Ancillary or add-on revenue for services, once the domain of low and ultra-low-cost carriers, has been embraced increasingly by full-service carriers, including Air New Zealand. Its ancillary revenue contributed an estimated 18.8% ($514 million) of its $2.734 billion revenue in the June 2022 financial year (percentage in US dollars before conversion to NZ$), according to rese...

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