Travel Blog


The hidden cost of low cost airline companies

According to a report by consultancy IdeaWorks Company, which researched the financial filings made by 114 airlines all over the world, some airlines are making almost 40 per cent of their money in ancillary charges.

The extra costs for things like baggage, food, seat allocation and frequent flyer programs are the major contributors.

Looking at budget airlines in 2013, there are some surprise contenders at the top of the list.

Ryanair, the most notorious cheap and cheerful carrier who really slugs passengers once they have booked a ticket, slipped down to 5th place with just 25% of revenue coming from additional fees.

Asian and Australian carriers made it into the top 10, including Tigerair and Jetstar. It pays to be very careful and read the fine print before you book.

Here are the top 10 airlines with ancillary revenue as a percentage of total revenue:

1. Spirit - 38%

2. Wizz Air - 35%

3. Allegiant - 33%

4. - 28%

5. Ryanair - 25%

6. Tigerair - 24%

7. Jetstar - 21%

8. AirAsia X - 20%

9. easyJet - 19%

10. AirAsia Group - 18%