Air Canada's 'ancillary' fees for customers add up to big bucks
Dec 4, 2017, 5:08 am
#1
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Air Canada's 'ancillary' fees for customers add up to big bucks
http://www.cbc.ca/news/business/airl...fees-1.4428464
Global airlines are expected to earn a record $82 billion US this year by charging customers extra for everything from seat assignment to baggage fees to travel commissions.
And Air Canada is among the top ten airlines in the world when it comes to earning this so-called ancillary revenue, racking up nearly $1.18 billion US last year, according to reports from IdeaWorksCompany, a U.S. research company that tracks airline revenue.
Global airlines are expected to earn a record $82 billion US this year by charging customers extra for everything from seat assignment to baggage fees to travel commissions.
And Air Canada is among the top ten airlines in the world when it comes to earning this so-called ancillary revenue, racking up nearly $1.18 billion US last year, according to reports from IdeaWorksCompany, a U.S. research company that tracks airline revenue.
Dec 4, 2017, 9:32 am
#3
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Perhaps AC doesn't pay for them or perhaps there isn't a large number of pax who are willing to pay for them as well.
And of course, there isn't a line item for the collection currently held by one of our famed members.
And I was amused by this part of the CBC article sub-heading "forced to strip frills to compete". lol
Funny thing, I asked this question 3 years ago:
How much does AC earn in ancillary fees?
Dec 4, 2017, 7:26 pm
#5
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Considering AC is likely one of the top 10 airlines in the world it makes sense their "extra fees" are in line with their size. Note in the article $300M for WestJet in 27th place. Anyone boo-hooing over on the WS site re this article? Most people on this forum have status and don't have to normally pay for these charges since we have paid in numerous other ways. Anyway, a big yawn in my opinion. Glad AC got $1B+ in revenue to subsidize my flight passes 
Dec 4, 2017, 8:48 pm
#6
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https://www.routesonline.com/news/29...etwork-update/
AC does not make it to top 25 on this list, but its 1+ years old
http://atwonline.com/airline-financi...rating-revenue
Dec 4, 2017, 8:57 pm
#7
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Well AC is not on the list of the top 10 airlines in the world and is not even on the list of the top 20. However there are probably a lot if different ways to rate top 10.
https://www.routesonline.com/news/29...etwork-update/
AC does not make it to top 25 on this list, but its 1+ years old
http://atwonline.com/airline-financi...rating-revenue
https://www.routesonline.com/news/29...etwork-update/
AC does not make it to top 25 on this list, but its 1+ years old
http://atwonline.com/airline-financi...rating-revenue
Sep 19, 2019, 10:46 am
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https://www.ctvnews.ca/business/air-...t-it-1.4599179
MONTREAL -- All those checked bags, seating upgrades and onboard snacks you pay for on Air Canada flights are starting to add up for the company.
While the country's biggest airline lags behind other global carriers in revenue from passenger fees, it is poised to catch up after its recent purchase of the Aeroplan rewards program, a new report says.
Air Canada took in US$1.45 billion in so-called ancillary revenue last year, or about US$28.54 per passenger, according to the report Tuesday from airline consulting firm IdeaWorksCompany.
MONTREAL -- All those checked bags, seating upgrades and onboard snacks you pay for on Air Canada flights are starting to add up for the company.
While the country's biggest airline lags behind other global carriers in revenue from passenger fees, it is poised to catch up after its recent purchase of the Aeroplan rewards program, a new report says.
Air Canada took in US$1.45 billion in so-called ancillary revenue last year, or about US$28.54 per passenger, according to the report Tuesday from airline consulting firm IdeaWorksCompany.
Sep 19, 2019, 10:53 am
#12
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I'm shocked at that number.
Though I also want to know the definition of "passenger" here.
Because if a SFO-YVR-YYZ booking counts me as two passengers, but I'm only paying one checked bag fee, then... I'm even more shocked at that number.
Though I also want to know the definition of "passenger" here.
Because if a SFO-YVR-YYZ booking counts me as two passengers, but I'm only paying one checked bag fee, then... I'm even more shocked at that number.
Sep 19, 2019, 11:19 am
#13
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I think we tend to forget that like 95% of AC pax have no status to get free bags/free seats. I guess if your example counts as 2pax - its a bit less shocking that it's so low.
Have you ever tried to price out a basic Y ticket without status on AC - its obscene what the extra charges are.
I am actually shocked that the increase is only 250 million over 2 years. I guess we've come to the point where its becoming harder to squeeze more money per pax.
Sep 19, 2019, 11:42 am
#14
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With Aeroplan under their wing (see what I did there), won't AC puts in their book revenue for some Aeroplan rewards even though on a cash basis it's not getting them money?
e g. if you use points for bags checked or upgrades instead of buying on Amazon through Aeroplan, they would calculate this as $?
e g. if you use points for bags checked or upgrades instead of buying on Amazon through Aeroplan, they would calculate this as $?
Last edited by theBeachBoy; Sep 19, 2019 at 12:47 pm
Sep 19, 2019, 11:52 am
#15
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I am not. Thats below a cost of a single checked bag. If a family of 4 wants to sit together on AC - fork over $200+. An average of only $28 actually surprises me that its that low, given the broad scope of what extras it includes.
I think we tend to forget that like 95% of AC pax have no status to get free bags/free seats. I guess if your example counts as 2pax - its a bit less shocking that it's so low.
Have you ever tried to price out a basic Y ticket without status on AC - its obscene what the extra charges are.
I am actually shocked that the increase is only 250 million over 2 years. I guess we've come to the point where its becoming harder to squeeze more money per pax.
I think we tend to forget that like 95% of AC pax have no status to get free bags/free seats. I guess if your example counts as 2pax - its a bit less shocking that it's so low.
Have you ever tried to price out a basic Y ticket without status on AC - its obscene what the extra charges are.
I am actually shocked that the increase is only 250 million over 2 years. I guess we've come to the point where its becoming harder to squeeze more money per pax.