Soaring demand for add-ons earns Ryanair £2.6bn bonus
RYANAIR earned almost £2.6 billion in the past year from optional add- ons charged to passengers on top of their ticket price, a report has shown.
The airline charges customers for additional benefits such as choosing seats on their flight, checking bags into the hold and priority boarding.
A study has found that Ryanair’s income from sales of items other than tickets rose by almost a fifth in the past year, making it more money than any airline outside of the US.
Researchers from Ideaworks, a US consultancy that monitors so- called ancillary revenue in the airline industry, found it now makes up more than one third of Ryanair’s income.
It follows an explosion in Ryanair’s add-on charge revenue over the past decade, rising from around £420 million in 2010, when it accounted for 22 per cent of the company’s total revenue.
The latest figures suggest the carrier is making the most money on top of ticket sales through charges for priority boarding and reserved seating.
In the past year, the £2.6 billion raked in from additional costs represented an average of around £17 per passenger, the report found.
It was claimed that the add-ons had helped airlines to lower their prices to lure customers back following a slump in demand for flights due to the coronavirus pandemic.
The report said: “This delivers reliable cash flow while airlines experiment with very low fares to tempt consumers back into the air.”
The additional benefits were also said to have offered increased appeal for passengers in recent months, with customers more likely ask to sit at the front
of the plane or for additional legroom, for example. “Seat location has become an important feature, as passengers want to be in the front of the cabin for a quicker and smoother exit upon arrival,” the report continued.
“Extra leg room, which provides more personal space, is also popular with consumers.”
A Ryanair spokesman said: “All of Ryanair ’s ancillary products are optional choices for consumers and our product offering and prices are fully transparent.”