U.S. airlines bring in more revenue from fees for bags and other products and services than do the world’s other carriers, a new report released today reveals.
United, Delta and American finished in the top three — each generating billions in ancillary revenue outside airfares last year, according to the report by IdeaWorks, a consultant specializing in ancillary revenue and brand development.
The report analyzed financial filings of 50 airlines worldwide and found they combined to bring in $22.6 billion of ancillary revenue last year.
That’s a 66% increase from ancillary revenue reported by 47 airlines two years ago.
“It’s clear that airlines recognize the importance of ancillary revenue and are developing increasingly innovative ways to generate it,” says IdeaWorks President Jay Sorensen.
Many airline passengers, though, are annoyed at buying a ticket and paying extra for services and products that once were free. The extra fees initially were charged by low-fare carriers but have now become a priority for all airlines — and essential for their profitability.
Read more: Airlines make record $22.6 billion from fees, report finds
Over the summer John Pistole TSA chief launched a trial ‘pre-screening’ pilot program called PreCheck with Delta and American Airlines for frequent flyers.
The program allows the frequent flyers to present personal information in advance to pass through security a little more smoothly. The TSA started testing the program on Oct. 4th.
According to American Airlines the benefits of the program include:
• Expedited screening at designated security checkpoints
• No longer removing shoes, belts or jacket
• No longer removing laptops for separate screening
• No longer removing liquids in 3-1-1- compliant bags from carry-on baggage
Currently this TSA PreCheck pilot program for AA is available only at DFW (checkpoint C30) and Miami International Airport (checkpoint D2).
In order to participate in this program you must enroll at CBP Global Online Enrollment System (GOES) account.
On November 2nd, TSA chief John Pistole met with lawmakers to share the success of the program. You can check that out at the Senate Committee on Homeland Security and Governmental Affairs website.
Also, changes to how TSA screens young children under the age of 12 have been set in place. The agency will no longer pat down children as long as nothing suspicious comes up in metal detector or body scanner detectors screenings.
At this time the TSA PreCheck is only available on domestic flights out of four airports at Atlanta, Detroit, Dallas/Ft. Worth and Miami airports. At the Seante Committee on Wednesday Pistole was to share how successful it was going and that they will likely expand the pilot program.
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Tagged airlines, Airports, american airlines, Dallas, delta, frequent flyer, Miami, security checkpoints, Transportation Security Administration, travel, TSA