Ryanair’s auxiliary revenues soared to €1.57bn last year despite the Irish airline being without a car rental vendor for part of the year.
The airline recorded a 13% increase in revenues from non-ticket sources in 2015 to maintain its position among the world’s elite in auxiliary revenue generation.
The improved performance was led by onboard sales and greater demand for reserved seating which offset reduced travel insurance sales and the impact of the car rental issue.
Ryanair launched its own car hire website in August 2015 as part of a partnership with online car rental aggregator CarTrawler after a dispute with its previous partner, Hertz, which ended its relationship with the airline the previous month.
Despite the impact on Ryanair’s revenue generation, the Irish company ranked sixth in a survey of 135 airlines’ auxiliary revenues worldwide, conducted by CarTrawler.
The report’s top 10 list of airlines is dominated by US companies such as United, with revenues of $6.2bn; American ($4.71bn); and Delta ($3.77bn).
Southwest came in just ahead of Ryanair with $2.12bn in auxiliary sales while the Irish airline’s $1.74bn trumps that of German giant Lufthansa Group ($1.49bn).
The top 10 airlines recorded combined auxiliary revenues of $26bn in 2015 compared to $8.4bn in 2008.
Ryanair’s implementation of allocated seating fees replaced the revenue lost due to lower fees associated with the company’s ‘Always Getting Better’ plan.
The role of Ryanair Labs — the company’s research arm —was also recognised in the report for unveiling a new website and mobile app which gained “rapid acceptance” and sales.
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