Ryanair makes quarter of income from add-ons

Ryanair makes a quarter of its income from 'ancillary revenue', which is made up of irritating add-ons including baggage charges, booking fees, and on-board sales - according to research from consultants IdeaWorks. It's far from the only airline making shocking sums this way.

The study looked at 63 airlines, and the results from Ryanair were striking. In 2014, the average passenger paid £13.64 extra in fees, and the add-ons made the airline £1.24 billion (or 24.6% of its revenue).

Its push to win business clients seems to be attracting even more income, as the company reported 9,000 people a day are buying its Business Plus fare bundle - which brings together free airport check-in, one free checked bag, a premium seat, priority boarding, and FastTrack through airport security.
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How it compares

The proportion of income coming from these revenue streams puts Ryanair third out of all the airlines serving UK airports - after Hungarian budget carrier Wizz Air (33.7%) and Leeds-Bradford-based airline Jet2.com (28.5%).

This looks particularly striking when compared to traditional carriers, like British Airways, which makes 1.9% of its money in fees - an average of £5.81 per passenger - and a total of £243 million. An estimated £42 million of this came from seat assignment fees and £47.5 million from checked baggage.

EasyJet comes out at a more measured 18.8%, or £14.58 per passenger - putting it tenth on the list. The researchers estimated the breakdown for easyJet, assuming checked baggage makes up half its add-on income, while assigned seating is 8%, easyJet Plus membership is 7%, credit card fees 7%, extras in bundled fares 20%, and onboard sales, hotels and car rental 8%.

Flybe makes 20.7% of its revenue through add-ons - or £17.92 per passenger - putting it in 7th place. The researchers said this comes mainly from baggage fees, advanced seating assignment, commissions on its credit card, change fees and credit card fees.

There are plenty of travellers who feel the extra fees are unfair and misleading - and are appalled that airlines are making as much as £13.64 from each passenger in this way.

However, there are others who take care to book flights as soon as they are released, and are happy to accept the add-ons when they can get the flight itself for a fraction of the traditional fare. Those people argue that you can avoid a great deal of the fees and charges, and get a great bargain.

What do you think? Let us know in the comments.

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