cambridgetoday.ca on Nostr: 'Junk fees' or flexible flying? Passenger charges fuel profits — and travellers' ...
'Junk fees' or flexible flying? Passenger charges fuel profits — and travellers' ire
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Passenger charges, also known as 'junk fees,' are fueling airline profits and causing frustration among travelers. The additional fees for services such as checked bags, pre-selected seats, and onboard snacks make up a growing share of airline revenue. Air Canada's ancillary revenue reached nearly $2 billion in 2022, up by nearly 50% from five years earlier. WestJet recently introduced a new service tier called 'Extended Comfort,' where economy-class passengers can pay for extra legroom, early access to overhead bins, and a free alcoholic drink. Ancillary revenue plays a critical role in the industry, helping to diversify income and insulate companies from fluctuations in fare prices, fuel costs, and competition. However, some passengers feel that the endless 'nickel-and-diming' risks alienating them. The federal government in Canada has pledged to 'crack down on junk fees' charged by carriers, prompting the National Airlines Council of Canada to demand greater clarity from Ottawa. Larger airlines see no choice but to slice their purchase options into ever thinner levels of service to compete with discount carriers. The debate continues as to whether these charges are 'junk fees' or if they offer greater choice for travelers.
#Airlines #PassengerCharges #AncillaryRevenue #Travelers #Fees
https://www.cambridgetoday.ca/national-business/junk-fees-or-flexible-flying-passenger-charges-fuel-profits-and-travellers-ire-8633351
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Passenger charges, also known as 'junk fees,' are fueling airline profits and causing frustration among travelers. The additional fees for services such as checked bags, pre-selected seats, and onboard snacks make up a growing share of airline revenue. Air Canada's ancillary revenue reached nearly $2 billion in 2022, up by nearly 50% from five years earlier. WestJet recently introduced a new service tier called 'Extended Comfort,' where economy-class passengers can pay for extra legroom, early access to overhead bins, and a free alcoholic drink. Ancillary revenue plays a critical role in the industry, helping to diversify income and insulate companies from fluctuations in fare prices, fuel costs, and competition. However, some passengers feel that the endless 'nickel-and-diming' risks alienating them. The federal government in Canada has pledged to 'crack down on junk fees' charged by carriers, prompting the National Airlines Council of Canada to demand greater clarity from Ottawa. Larger airlines see no choice but to slice their purchase options into ever thinner levels of service to compete with discount carriers. The debate continues as to whether these charges are 'junk fees' or if they offer greater choice for travelers.
#Airlines #PassengerCharges #AncillaryRevenue #Travelers #Fees
https://www.cambridgetoday.ca/national-business/junk-fees-or-flexible-flying-passenger-charges-fuel-profits-and-travellers-ire-8633351