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RYANAIR COLLECTED MORE than €1.8 billion through extra charges and add-ons last year – but US-based airlines squeezed more money out of passengers.
A new report compiled by American aviation consultancy IdeaWorksCompany suggested that Ryanair was one of the top-10 airlines in the world in terms of revenue generated through add-ons, extra charges and on-board food.
In its most recent financial year, the low-cost carrier recorded ancillary revenue sales of over $2.3 billion, or about €1.8 billion at the time its annual report was filed, putting it in fifth position behind four US airlines in the league.
US carrier United recorded the highest total ancillary revenue with sales of €4.9 billion.
Delta raked in €4.5 billion, American €4.4 billion, and Southwest – which inspired Ryanair’s low-cost business model – recorded ancillary sales of just over €2.6 billion.
Ancillaries were worth more than €1 billion to Ryanair’s British rival, EasyJet, which also featured in the top-10.
IdeaWorks’ research – which looked at 72 airlines around that world – contained only estimated figures from several carriers, including Air France-KLM and Lufthansa Group.
In terms of the how much add-ons and extra charges were worth to overall sales, ancillaries accounted for more than a quarter of Ryanair’s €6.65 billion in operating revenue last year.
Ancillaries were worth more to Florida-based low-cost airline Spirit, with extras accounting for almost half of the company’s total revenue.
Ryanair did not feature in the top-10 airlines for ancillary revenue per passenger, a list also headed by Spirit, which an earned average of €43.76 in non-fare income for each customer.
Icelandic low-cost carrier Wow Air, which operates flights from Ireland to the USA and Canada via Iceland, was second on the list, pulling in an average of €41.96 per passenger.
Hungarian budget airline Wizz Air also featured in the top-10 with €26.74 per passenger.
According to Ryanair’s 2017 annual report, it took an average ancillary revenue per booked passenger of €14.83 – or $17.28 at current rates.
Allocated seating
According to IdeaWorksCompany’s report, half of Ryanair’s customers now pay to choose their own seats, up from 23% in 2016.
Last year, there were complaints from passengers who hadn’t paid for seats that they were randomly assigned seating far from family members and partners despite checking in at the same time.
The airline said at the time that this was due to an increasing number of passengers paying for allocated seating and choosing aisle and window seats.
According to the report published by IdeaWorksCompany, sponsored by Dublin-based travel tech firm CarTrawler, the 10 airlines featured in its ancialliary revenue league table generated a combined €25.5 billion through add-ons.
A decade ago, that figure was closer to €1.8 billion.
Ryanair and Easyjet were the only airlines in the top-10 that don’t have frequent-flyer programmes, which generally account for a sizeable proportion of carriers’ overall ancillaries.
Jay Sorensen, the author of the report, said that both airlines’ “continuing focus on business travel strong suggests (frequent-flyer programmes) will some day occur”.
Written by Conor McMahon and posted on Fora.ie
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I think I’m done with Ryanair. Last time I flew with Aer lingus. Honestly, after flying with Ryanair it felt like being upgraded to first class. Plus when you book with Ryanair it seems like you put your holiday in jeopardy these days
@Alan Carmody: “these days”?, there has been 2 strikes
@Alan Carmody: All airlines, cabin crew , controllers and so on can strike. Not just Ryanair.
€10 to fly to Bimingham and they won’t carry a big bag in the hold, won’t feed me hot food, won’t give a complimentary drink, won’t change my ticket to suit my frageries and won’t insure me. I’m shoked and feel victimised.
@D O’S: next thing you know they will have us flying the plane for £8 return.
I use Ryanair quite a lot for business and pleasure and if you book the flights a month or so in advance it’s the best value for money you can get. Sometimes my train costs to and from the departing airport is greater than the flight costs.
Long may it last.
People tend to forget that 20 year’s ago a “cheap” fare to Amsterdam was £219 punts plus£5 tax …. Ok it included a bag, seats were allocated at check-in and there was a complimentary drink on board , but you had to stay a Saturday night, book minimum 14 days in advance, if you didn’t it was about£358 …. So Ryanair changed all that and we still complain….. treat Ryanair as a bus and you get what you pay for.
@Sean Leonard: mainly cheap at the times that are not peak times
If you don’t like RyanAir, don’t fly with them, or if you do fly with them, don’t put yourself in a position where you end up being charged add ons.
Ryanair would charger ye for the bags under your eyes if they thought they could get away with it.
@Pixie McMullen: ‘The stupid enjoy having the wool pulled over their eyes’. PT Barnum.
Robbing is robbing it makes no difference who does it.Dont call it add ons.
Quick reminder of a story about a dying baby that journal snuck in at midnight last night and updated at 5am. Underfunded health service thanks Fine Gael.
http://www.thejournal.ie/no-ambulance-baby-stopped-breathing-4136761-Jul2018/
Scratch cards here. Get yer lovely scratch cards.
Amazing amount of bitter begrudgery appears whenever Ryanair is mentioned.
They are hardly the first or only provider of goods or services to seek every possible extra or impulse buy.
We oldies still remember the BA/AL ‘duopoly’ – now there was something to really whine ‘n’ whinge about.
@Michael Kavanagh: agreed… £199 to London return and you thought you got a bargain!! I remember paying £385 business class return fare to London for an interview because i wasn’t staying the compulsory Saturday night
You get what you pay for, so don’t complain! I fly with AerLingus, might pay a little bit more but know their workers are fairly treated.
Why am I not surprised?
I’m glad there’s plenty of people out there that buy the extras, keeps the ticket cost nice and low for me :)
God, the begrudgers here are incredible. Don’t like Ryan air then fine don’t fly with them , sandwiches too expensive , don’t buy them. Bags too expensive , don’t bring them. Want to pay three times the fare for a cup of coffee then grand book BA/AL. And as for complaining about O’Leary “lording it up” at the races , if I owned gold cup / champion hurdle etc winners … then you’d see lording it up big style .
Ryanair:
The McDonald’s of the aviation world.
@Jimmy Coltrane: McDonald’s are efficient and have seriously good customer service..
@Jimmy Coltrane: snobby. Let’s cock our noses at the little people who eat at McDonald’s or fly Ryanair. The reason why those companies are so successful is because they sell services that people want and can afford. Not everyone can afford to eat at crackbirds and fly emirates.
If you’re still flying Ryanair and complaining, I’ve no sympathy. We all know what they’re about and the expectation of what kind of treatment you’re going to get when things go wrong. Don’t like it? Don’t fly with them. Simple really
Every time I see O Leary at the races with his binoculars around his neck giving it the Lord of the manor attitude it makes me sick.
@K P: It’s not your fault you are so bitter and begrudging. I blame your parents……!!
When I see him winning Race after race I am proud to be Irish and I say, some day I hope I can do that. I wonder where I can learn and improve from him.
@K P:
You’re right there and some people with Ryanair it’s like them walking into Macdonalds expecting a steak. You get what you pay for in this world. It’s companies like Ryanair that put competition out there making flights affordable for people who otherwise wouldn’t be able to travel.
@K P:
Don’t go to the races so…….simple.
@Gareth Cooney: I agree
Been using Ryanair since ‘88 over 1,000 flights. You get what you pay for. When I want more I use another airline
@Gareth Cooney: Well if you believe in exploiting workers and scamming the public is good practice good luck to you.
@K P:
The workers, as are the customers, are welcome to look elsewhere.
@K P: we have laws in our little country that deals with exploitation of workers and we also have laws that deals with fraud and embezzlement.
So away off with you to your local solicitor and get your case together because by the sounds of it you are going to take down Ryanair single handedly.
You Legend………!!
@Gareth Cooney: what a scrotum you are. enjoy your meal on your next Ryanair flight after the crew have cleaned the toilets without gloves and the go serving food. couldn’t think of a nicer person to get the runs
I fly with Ryanair regularly & with no complaints.
Compared to a recent BA flight – no difference at all.
On a recent RA flight, pre flight briefing was interrupted & door opened+ramp lowered to take on 2 passengers who had mislaid a passport at departure. Who else would do that?
I would walk before I’d fly with Ryanair cheap flights a joke
@Margaret Kane:
Better wear the water wings too!
@Margaret Kane: so you can walk on water!! I use Ryanair regularly and always get a good deal and have no complaint about service.
If you fly, Don’t Buy. The pressure staff are under to make their Bosses richer should be investigated.
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