Total ancillary revenue for airlines increased 13.4% to $13.2 billion in 2025, while total revenue increased by 7.2%.
The figures were released as part of the annual Yearbook of Ancillary Revenue from IdeaWorksCompany. The report included 63 airlines in total, with 58 included in both the 2025 and 2026 editions and used for the year-over-year comparison.
“Ancillary revenue growth on the pace and scale revealed in this yearbook—double the rate of overall revenue and increasing $13.2 billion among like-for-like airlines—puts a spotlight on how both core and ancillary products are merchandised,” said Djois Franklin, chief executive of SeatMaps, an airline seat-map tech provider and merchandising platform, which sponsored the report.
According to Jay Sorensen, author of the report and president of IdeaWorksCompany, the growth of ancillary revenue over the past five years is the result of seat assignment fees and “greater reliance on branded fares.”
Airlines increased the price of a la carte services, with more passengers buying them, while artificial intelligence (AI) is also “playing a larger role” in boosting ancillary revenue, notably through revenue management practices.
However, the report also cautioned that “AI is poorly defined” and is often used to describe algorithms that have already been in use.
“What is surprising from a review of thousands of financial documents filed by airlines for 2025 is the lack of direct reference to artificial intelligence. The topic is missing from the individual airline narratives, and that's because it was not observed,” the report reads.
Additional findings
Approximately 30 airlines generated at least $1 billion in ancillary revenue in 2025, up from 27 airlines in 2024.
While it dipped by 1.8 points compared to 2024, Frontier Airlines still generated the most in ancillary revenue as a share of total revenue. The low-cost carrier (LCC) generated $2.2 billion in ancillary revenue, which accounted for 60.2% of total revenue. The top 10 airlines in this category were all LCCs, which drive revenue through fees for baggage and assigned seats.
United Airlines made the most in total ancillary revenue, generating $11.5 billion and marking 9.3% increase from 2024. Delta and America claimed the second and third spots, earning $10.8 billion and $9.7 billion, respectively.
These larger airlines are also competing more directly with LCCs by refining their basic economy strategies.
"Ancillary revenue has proven to be a reliable method to serve both ends of the market," the report reads.
"No frills basic economy attracts consumers on the skimpiest of travel budgets. Global network airlines are mastering the art of operating in the LCC environment. The amazing alchemy of ancillary revenue also allows airlines to play a premium game by encouraging higher income consumers to spend for more comfort and convenience."
Jet2.com made the most ancillary revenue per passenger, reaching $100.73 per passenger. LCCs made up a majority of the top 10 in this category as well, but United and Qantas claimed the last two spots thanks to revenue generated by their co-branded credit card portfolios.
Southwest Airlines, which notably started charging for baggage and seat assignment in 2025, saw a 20% increase in ancillary revenue per passenger.
Frequent flyer programs were also a major source of revenue for large U.S. airlines in 2025. American, Delta, Southwest and United made a total of $27.9 billion, or $37.72 per passenger, from these programs.
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