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These Airlines Charge the Most Extra Fees

Aug. 03, 2018
3 min read
LaGuardia Airport, New York City
These Airlines Charge the Most Extra Fees
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Fees, fees, and more fees — the airline industry is full of them, and there seems to be a new one every month.

These fees make up a large portion of many airline's revenue. Specifically referred to as ancillary fees, these extras include paying for things like checked bags, seat selection or on-board food — essentially whatever's not included in the initial cost of the ticket.

IdeaWorksCompany released its annual ancillary revenue rankings showing the top 10 carriers based on average fees charge per passenger:

  1. Spirit: $51 per passenger
  2. WOW Air: $49 per passenger
  3. Allegiant: $49 per passenger
  4. Frontier: $48 per passenger
  5. Jet2.com: $43 per passenger
  6. Qantas Airways: $43 per passenger
  7. United: $39 per passenger
  8. AirAsia X: $33 per passenger
  9. HK Express: $33 per passenger
  10. Wizz Air: $31 per passenger

Not surprisingly, the list was full of ultra-low cost carriers. US-based Spirit Airlines topped the rankings with its fees averaging $51 per passenger. Tied for second was Icelandic ULCC WOW Air and Allegiant, with Frontier coming in at close fourth.

Surprisingly, Qantas and United, both large legacy carriers ranked six and seven, respectively. This is likely due to the recent implementation of basic economy fares (even on international routes) and other fees by larger carriers so their fares can stay competitive with budget carriers. Remember, you can use a co-branded credit card to get around many basic economy fees — most provide free checked bags.

IdeaWorks found that baggage was the biggest income generator in the category of ancillary fees, which makes sense considering it’s quite hard to travel without any sort of luggage. It also discovered that one of the biggest boosts to Spirit's ancillary revenue was its online booking fee, making up 33% of that revenue source. Surprisingly, it can actually be avoided if you book your ticket with a Spirit agent at one of their airport locations .

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Spirit came in first on another list, which ranked ancillary revenue as a percent of total revenue:

  1. Spirit - 46.6%
  2. VivaAeroBus - 43.6%
  3. Frontier - 42.4%
  4. Wizz Air - 41.6%
  5. Allegiant - 39.8%
  6. Volotea - 34.2%
  7. WOW Air - 28.5%
  8. Ryanair - 28.2%
  9. Volaris - 27.7%
  10. Jet2.com - 27.6%

Predictably, the list is full of low-cost carriers who's business models are essentially based on the bet that most passengers will be tacking on a thing or two to their tickets.

A final comparison ranked the revenue from frequent flyer programs in terms of how large of a chunk it contributed to their total ancillary revenue:

  1. Southwest - 79%
  2. Alaska - 64%
  3. American - 59%
  4. Delta - 56%
  5. Lufthansa Group - 43%
  6. United - 41%
  7. Air Canada - 41%
  8. Air France/KLM - 20%

Southwest and Alaska likely came out on top since neither have basic economy fares and Southwest doesn't charge for the first two checked bags of every passenger.

For those who follow the industry, this news won't come as a shock — airlines rely heavily on their frequent flyer programs and miles purchased by banks through credit card co-brand relationships to boost their profits. Delta receives about 35% of its revenue by selling miles to American Express and American about 50% through its co-brand relationships.

Featured image by Getty Images

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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
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2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.