the Amadeus Worldwide Estimate of Ancillary Revenues calculates the total as an 11.3-percent increase from the $32.5 billion the industry collected in 2011. Not surprisingly, perhaps, the most heavily fee-dependent airlines, such as Spirit, AirAsia and easyJet, posted some of the biggest gains. Called “Ancillary Revenue Champs” in the report, these carriers are expected to earn $5.6 billion in extra revenue this year, a 30.5-percent increase over 2011. (www.nbcnews.com) More...
When all the so-called ancillary services were included in the price of the ticket, they were subject to the 7.5% federal excise tax. The airlines, by collecting the costs of these services outside of the ticket price, avoid paying the excise tax. Travelers would like to have an all-in-one price again, but until the federal government mandates that the airlines must pay the excise tax not only on the ticket cost, but on the additional fees, the piecemeal pricing will remain in effect. 7.5% of $36 billion is $2.7 billion...surely that money could help in some way?
