EasyJet has bags of money

Well easyJet has certainly cashed in big style on the move to travellers paying for checked bags in the past year. In its last quarter, the UK-based low-cost player made a huge £105 million out of ancillary fees (quarter to 31 Dec 2008). That is up from £57 million in the same quarter in 2007 and driven, says easyJet, by the increase in its checked bag charge.


It just goes to show how fantastic the whole shift to paying for checked bags has been for so many carriers.

Ancillaries, such big news everywhere, represented 23.5% of easyJet’s revenues in that quarter. In the 2007 quarter the percentage was just 15.7%.

Ancillary revenue per seat is now £8.68 compared to £5.06 in the 2007 quarter.

Low-cost carriers have generally been the best at tapping the ancillary revenue stream. As we reported recently network carriers find it a little harder to move.

And in the US too, carriers are seeking to cash in on the trend.

Here is easyJet’s Q1 management statement issued today.



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