Airline Ancillary Services Market Growth Report – Size, Share 2030

Airline Ancillary Services Market Forecast to 2030 - Global Analysis by Type (Baggage Fees, On-Board Retail and A La Carte Services, Airline Retail, and FFP Mile Sales) and Carrier Type (Full-Service Carriers and Low-Cost Carriers)

Publication Month : Aug 2023

  • Report Code : TIPTE100001276
  • Category : Aerospace and Defense
  • Status : Published
  • No. of Pages : 156
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[Research Report] The airline ancillary services market size is projected to reach US$ 728.53 billion by 2030 from US$ 168.80 billion in 2022; the market is expected to record a CAGR of 20.1% from 2022 to 2030.


Analyst Perspective:

The key players operating in the airline ancillary services market are witnessing increased demand for services such as entertainment, Wi-Fi, and catering. The growing number of aviation passengers across the world significantly drives the airline ancillary services market. Ancillary revenues are critical to the airline business model; for instance, in developed markets such as North America and Europe, airline companies including Ryanair, Spirit, and Allegiance have recognized ancillary revenues contributing significantly to their total revenues. The trend was soon adopted by rapidly developing economies in Asia Pacific, where carriers such as Air Asia experienced that one-fifth of their revenue comes from ancillary services. Thus, this trend is anticipated to significantly influence airline carrier revenues, particularly in developing economies, which would further contribute to the airline ancillary services market growth.

Airline Ancillary Services Market Overview:

The airline ancillary services market is benefitted from the willingness of the passengers to pay for services that add value to their experience. Seat upgrades, pre-booking of seats, and baggage are a few of the popular ancillary services in demand. Several startups are entering the market to cater to these evolving needs. Further, low-cost carriers are gaining immense importance in the global aviation industry. The robust business models for ticketing, airport services, onboard services, and others facilitate low-cost carriers to attract passengers from all classes of society. The rising demand from passengers for additional services such as inflight food and beverages service, Wi-Fi, and retail is expected to offer several opportunities to startups. Apart from the aforementioned ancillary services, the in-flight entertainment (IFE) service is expected to impact the airline ancillary service industry substantially. As digitally cultured customers, particularly business travelers, anticipate their carriers to facilitate in-flight connectivity options. It was also found that most passengers on a short-haul route demand web access while onboarding to access their digital devices. Thus, the rising demand for IFE is expected to enhance ancillary revenues, positively influencing the airline ancillary services market growth.

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Airline Ancillary Services Market: Strategic Insights

Market Size Value inUS$ 168.80 billion in 2022
Market Size Value byUS$ 728.53 billion by 2030
Growth rateCAGR of 20.1% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
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Airline Ancillary Services Market Driver:

Rising Preference of Air Travel by Middle-Income Passengers

As per the International Air Transport Association (IATA), the number of passengers traveling by air is expected to reach ~7.8 billion by 2036. The rapidly emerging middle-class segment can be associated with a rise in the number of air passengers in developing economies. In October 2021, world organizations such as United Nations World Tourism Organization (UNWTO) and the International Civil Aviation Organization partnered to support a resurgence in travel and tourism. In October 2020, UNWTO and IATA inked a Memorandum of Understanding to work together to support the resumption of global tourism. The main focus of this agreement was enhancing the confidence of the general public in air travel, which further helped increase air traffic. According to the United Nations, the growing number of middle-class travelers, especially in China and India, is the primary factor contributing to the growth of air travel and various ancillary services. As the world recovers from economic contractions, the demand for air travel increases. The rising air travel demand has resulted in the augmented production of s, which has considerably contributed to the demand for ancillary services such as in-flight Wi-Fi, excess luggage, food and beverages, and in-flight shopping. The increasing focus on offering enhanced services to flight passengers and the rising number of aviation passengers worldwide are driving the airline ancillary services market growth.

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Airline Ancillary Services Market Segmental Analysis:

The airline ancillary services market, by type, is segmented into baggage fees, on-board retail & a la carte, airline retail, FFP mile sale, and others. The baggage fees segment held the largest market share in 2022. Baggage fees are additional charges imposed by airlines for checking in luggage or carrying extra baggage on a flight. These fees are separate from the base ticket price and vary based on factors such as the airline, destination, and baggage weight or size. Baggage fees have become a common practice in the airline industry, allowing airlines to generate extra revenue and offer more flexible fare options to passengers. Travelers can choose to pay for checked baggage or opt for lower base fares if they travel with only carry-on luggage. The implementation of baggage fees has been a significant aspect of the airline ancillary services market, providing airlines with a means to increase profitability and offering passengers choices in their travel experience.

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Airline Ancillary Services Market Regional Analysis:

The North America airline ancillary services size was US$ 64.70 million in 2022; the market is expected to register a CAGR of 20.6% during 2023–2030, reaching a value of US$ 289.34 million by 2030. The North America airline ancillary services market is segmented into the US, Canada, and Mexico. The US held the largest share of the North American airline ancillary services market in 2022. According to the data of the Bureau of Economic Analysis, the GDP of the US in the fourth quarter of FY2022 increased by ~2.6%; this growth in the GDP was primarily driven by strong business investment and consumer spending. The airline industry contributes significantly to the overall US economic growth. The rising consumer spending and business investment in the civil airline sector are expected to encourage the airline ancillary services market growth.

Airline Ancillary Services Market Key Player Analysis:

United Airlines Holdings Inc, American Airlines Group Inc, Delta Air Lines Inc, EasyJet Plc, Deutsche Lufthansa AG, Qantas Airways Ltd, Ryanair Holdings Plc, Southwest Airlines Co, The Emirates, and Air France KLM SA are among the major players in the airline ancillary services market.

Recent Developments:


Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the airline ancillary services market. A few recent key airline ancillary services market developments are listed below:

  • In February 2023, United Airlines recently announced its decision to allow families with small children to select adjacent seats at no additional cost. This customer-friendly move acknowledges the importance of providing families a seamless and comfortable travel experience, highlighting United's commitment to enhancing its ancillary offerings.
  • In January 2023, Delta Air Lines' announced free Wi-Fi for passengers in the US, made possible through a partnership with T-Mobile. Starting February 1, the frequent flier program members of SkyMiles would enjoy complimentary Wi-Fi. This move, made as a significant step toward enhancing ancillary service offerings, demonstrates Delta's commitment to improving the inflight experience and adding value to its loyal customers.
  • In July 2022, EasyJet took steps to improve the customer experience with a series of initiatives for the summer travel season. These include a dedicated customer hotline for families, extended customer service hours, "Helping Hands" at key airports, and the reintroduction of the Twilight Bag Drop service. The airline aims to provide additional support and convenience to passengers, showcasing its commitment to enhancing ancillary services.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type, and Carrier Type

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions

What is the incremental growth of the Global Airline Ancillary Services Market during the forecast period?

The incremental growth expected to be recorded for the Global Airline Ancillary Services Market during the forecast period is US$ 559.73 billion.

What is the estimated market size for the Global Airline Ancillary Services Market in 2022?

The Global Airline Ancillary Services Market was estimated to be US$ 168.80 billion in 2022 and is expected to grow at a CAGR of 20.1% during the forecast period 2023 - 2030.

What will be the market size for the Global Airline Ancillary Services Market by 2030?

The Global Airline Ancillary Services Market is expected to reach US$ 728.53 billion by 2030.

What are the driving factors impacting the Global Airline Ancillary Services Market?

The rising preference for air travel by middle-income passengers, benefits of frequent flyer programs, and in-flight retail partnerships are the major factors that propel the Global Airline Ancillary Services Market.

What are the future trends of the Global Airline Ancillary Services Market?

Increasing deployment of in-flight wi-fi are impacting the Global Airline Ancillary Services, which is anticipated to play a significant role in the Global Airline Ancillary Services Market in the coming years.

Which are the key players holding the major market share of the Global Airline Ancillary Services Market?

The key players holding majority shares in the Global Airline Ancillary Services Market are United Airlines Holdings Inc, American Airlines Group Inc, Delta Air Lines Inc, EasyJet Plc, and Deutsche Lufthansa AG.

The List of Companies - Airline Ancillary Services Market

  1. United Airlines Holdings Inc
  2. American Airlines Group Inc
  3. Delta Air Lines Inc
  4. EasyJet Plc
  5. Deutsche Lufthansa AG
  6. Qantas Airways Ltd
  7. Ryanair Holdings Plc
  8. Southwest Airlines Co
  9. The Emirates
  10. Air France KLM SA

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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