Page 92 - Beginner's Guide to Aviation
P. 92
AIRLINES' REVENUE
What are some examples of how an airline earns money? An airline mainly earns money from...
1. Selling air tickets 2. Carrying cargo and mail (passengers will purchase the tickets) (companies will pay airlines to help them
carry goods to another destination) An airline can also earn money from...
1. Selling meals on board 2. Collecting baggage fees
3. Seat Selection (e.g. insurance, hotel, car hire)
4. Travel Retail
5. Others
(e.g. lounge access, frequent flyer program miles)
FUN FACT:
Ancillary revenue is money that is earned beyond the sale of tickets that is generated by direct sales to passengers, or indirectly as a part of the travel experience.
So can you guess which of the above mentioned examples are considered as Ancillary revenue?
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