Airlines to amass $93 billion in add-on charges
Airlines in the U.S. and Europe led the world’s carriers in collecting a total of $92.9 billion from extra charges to check bags, upgrade seats and change reservations, among other services that once were included in the price of a flight.
The “ancillary revenue” projected for 2018 is expected to be 13% higher than the $82.2 billion collected by carriers last year, according to a study by IdeaWorks Co., a Wisconsin-based airline consultant. Such revenue includes the sale of miles and other services to banks to distribute to loyalty reward program members.
Total revenue may surge in the next few years when airlines in China — the world’s most populous nation — are expected to adopt the U.S. and European tactics of charging passengers fees for extra services and upgrades, said Jay Sorensen, president of IdeaWorks.
“They are very nervous about it but are realizing that there is tremendous revenue gain to be had,” he said of China, where the number of airline passengers has more than tripled in the last decade.
In the U.S. and Europe, one reason for the increase in fees and extra revenue in the last year is the growing popularity of the no-frills tickets known as “basic economy” fares, which don’t come with the option to check a bag or reserve a seat. Those cost extra.
Sorensen’s study predicts that airlines throughout Africa, Asia, the Middle East and South America will soon begin to offer similar fares.
Airlines like basic economy fares because the rockbottom prices entice passengers but when they learn that the fares don’t include many basic services normally included in the price of a ticket, most fliers buy an upgraded fare.
Sorensen compared basic economy fares to ordering food at a restaurant where the entree may seem affordable but the full meal, including appetizers, drinks and dessert, will cost much more.
The food’s better, but watch the water
The food served on airlines is not as fattening as in the past, but passengers might want to stay clear of the water.
Those are among the conclusions of the latest annual analysis of airline food by the Hunter College New York City Food Policy Center.
The study found that the average food choice offered by commercial airlines in the U.S. — including snacks, entrees and drinks — has fewer calories this year than in the last two years.
The average number of calories per menu choice on U.S.-based carriers rose from 392 calories in 2016 to 405 calories last year but dropped to 373 calories this year, a 32% calorie decline from last year, according to the study.
The calorie count dropped because airlines have replaced foods such as peanut butter and jelly sandwiches with salads and began offering new options including oatmeal for breakfast and vegan lunches, the study said.
The study also warned passengers to avoid the tap water, coffee and tea served on a plane, saying there may be harmful bacteria in the water that comes from various municipal systems and is stored in the airplane’s tanks.
“There are a couple of reliable researchers who believe there may be harmful bacteria in airline water,” the study said. “This is probably because the water tanks are not emptied very often (you would think they’d be emptied and cleaned at least once a day, but this is not so). So water is just sitting for long periods of time in what appear to be not-so-clean tanks.”
A spokesman for a trade group that represents the nation’s biggest carriers responded to the report, saying airlines ensure their water is safe by “following rigorous sampling and management requirements, which include periodic disinfection and flushing of the aircraft water tanks on a schedule required by regulations.”
But if fliers are still hesitant to drink water from the plane’s tank, Vaughn Jennings, a spokesman for Airlines for America, said airlines “typically provide bottled water.”
Air New Zealand ad pokes fun at Trump
Air New Zealand, known for its quirky advertising, has floated a touch of political commentary in its latest ad.
The airline from below the equator has launched a Christmas ad that depicts a summit attended by children who are on the naughty list and trying to come up with ways to get back in Santa’s good graces.
Youngsters from around the world fly to New Zealand, of course on the Auckland-based carrier. A boy from the U.S., wearing a dark suit and a Trump-style red hat emblazoned with “Make Christmas Great Again,” pushes his way past other delegates to reach the tarmac first, reminiscent of a certain 2017 NATO photo op.
During the summit, the kids all offer ways to be nicer and get off of Santa’s naughty list. When it comes time for the U.S. boy to offer his change of behavior, he muses: “I have to say, I’m not naughty at all. In fact, I’m the nicest person I know.”
That gets a round of laughter from the summit crowd, much as when President Trump told the U.N. General Assembly in September that his administration had in less than two years “accomplished more than almost any administration in the history of our country.”
The U.S. boy then responds just as Trump did — “Didn’t expect that reaction, but that’s OK” — but the nice meter appears unaffected.
It falls to the New Zealand kids to make a round of promises to push the meter all the way to “nice” (although “be nicer to the kids from Australia” was done with fingers crossed).
Funny videos are nothing new for Air New Zealand. The Kiwis have produced in-flight safety videos featuring nude flight attendants, fitness guru Richard Simmons and a planeful of characters from the “Lord of the Rings” movies, which relied on New Zealand for most of the outdoor scenery.
As for the behavior challenged children, the ad suggests that their summit put them back on Santa’s nice list.