Airline Ancillary Revenue Down Almost 50 Percent in 2020

A new study found that projected ancillary revenue earned by airlines in 2020 would be down by almost 50 percent compared to the total earned in 2019.

According to a study from IdeaWorks Company and Cartrawler, total ancillary revenue for the top 10 airlines last year was $46.6 billion, but the number is expected to drop to $23.7 billion for 2020.

The three largest carriers in the United States ranked as the top ancillary revenue earners for 2020, but the numbers are still down. American Airlines expects to see ancillary revenue dip 48 percent to $3.9 billion.

United expects a drop of 49 percent to $3.4 billion and Delta’s ancillary revenue will dip 53 percent to $2.9 billion. Airlines are expected to bring in ancillary revenue of just over $64 billion in 2020, a 41 percent decline from 2019.

The news isn’t all bad, though, as the report indicates the second quarter 2020 results of 17 carriers compared with the same period in 2019 show a modest increase in the ancillary revenue average, jumping from 21.7 percent in early 2019 to just over 22 percent in early 2020.

Earlier this week, U.S. President Donald Trump and his administration have proposed adding another $20 billion in aid for the airline industry in a new stimulus proposal worth more than $1.5 trillion.

On Wednesday, American Airlines announced it is working with international governments to begin offering pre-flight COVID-19 testing for travelers flying to other countries.