Jetstar up with global sluggers for extras beyond ticket price

More than a fifth of the ­Qantas offshoot’s revenue comes from extra charges levied on passengers.

Top 10 airlines.

Jetstar has been ranked seventh in an analysis of more than 60 global airlines when it comes to slugging passengers for extras beyond the price of a ticket.

More than a fifth of the ­Qantas offshoot’s revenue comes from ancillary charges levied on passengers for ­additional services ranging from checked baggage to inflight ­entertainment, catering, credit card fees and extra legroom seats, according to an analysis from US company IdeaWorks.

It lagged low-cost carriers such as US budget carrier Spirit Airlines, which charges for hand luggage and derived 38.7 per cent of its total revenue from ancillary charges.

Spirit, fellow US operator ­Allegiant and Britain’s Jet2.com eclipsed the legendary add-on expert Ryanair, which once mooted a fee for toilet ­access, for the amount of revenue earned from extras that also include the sale of hotel rooms and rental cars.

Qantas, which charges for items such as economy exit row seats on international flights, came in at 21st on the list, but much of this was due to its popular frequent-flyer program.

IdeaWorks looked at the 2014 financial filings of 130 carriers and compared 63 who reported ancillary revenue.

The ancillary revenue reported by the airlines hit $US38.1 billion in 2014, up 21 per cent on the previous year.

Ancillary revenue per passenger rose by 8.5 per cent to $US17.49.

Jetstar raked in just over $30 per passenger, compared to $US56.28 ($79) at top performer Spirit.

The analysis counts frequent flyer programs as ancillary revenue for those airlines that have them.

It was a similar story at Virgin Australia, which was ranked 41st with a note that it had ­benefited from the sale of a 35 per cent stake in its Velocity frequent-flyer program.

The report noted that the ­Ryanair dream to replace fares with ancillary revenues “now seems elusive’’ and budget airlines were instead turning their attention to passengers prepared to pay more for a ticket.

“The fine-tuning of fees and the tweaking of product design may allow top carriers to surpass 40 per cent,’’ it said.

“However, attempts among the most fee-conscious carriers now seem stalled.

“This reality is leading more LCCs to adopt methods that adopt high-yielding business passengers.’’

The report noted the British carrier easyJet was already selling annual subscriptions aimed at business travellers, called easyJet Plus, which included ­assigned seating, fast-track secu­rity, speedy boarding, and an ­additional carry-on bag for an annual fee.