Airline Surcharges Make Up for Loss in Business Travel Revenue
Passenger demand is increasing, but airlines aren’t adding any capacity. Non-ticket revenue, such as checked-on baggage fees and charging customers for changing their reservations, is helping.
Fuel surcharges that are typically added on to international airfares are likely to climb along with average base-level fares to help offset the higher expense of rising jet fuel prices, said Hotwire's Chief Executive Clem Bason.
Bason was quoted in a Marketwire article as saying that passenger demand is increasing, but airlines are not adding any capacity.
As the price of jet fuel hit a record high in 2008, airlines in many cases scaled back the frequency of flights, but they also parked older jets that were less fuel efficient and more expensive to maintain.
British Airways raised its surcharge recently, and U.S. airlines are likely to do the same.
Such surcharges can add on an additional $300 to $400 to a ticket, and are generally added as the industry moves into the peak travel period.
Average airfare for international flights this summer is already up 23 percent from a year ago and is climbing further as planes fill up, according to Hotwire.com. Domestic airfare is up 15 percent.
United Airlines' parent company UAL Corp. said its April passenger-unit revenue increased an estimated 23 to 24 percent from a year ago. Non-ticket revenue, such as checked-on baggage fees and charging customers for changing their reservations, helped that increase. Non-ticket revenue accounted for 2.6 percentage points of April's unit-revenue growth.
Though corporate travel offices have increased their travel budgets, they are nowhere near 2008 peaks, and may not be for some time. To offset the loss of business customers, airlines have been focusing on non-ticket revenue, or ancillary revenue, which includes all the little charges that drive most customers crazy, but are credited by airlines for keeping airfare competitive.
Most business travelers are exempt from extra fees such as checked-on luggage and premium economy-class seating, where as leisure travelers could easily pay an extra $100 on top of their airfare for each round trip.
During the fourth quarter, ancillary fees rose 18.3 percent from a year ago to $7.8 billion, and constituted 6.5 percent of the total revenue for 32 reporting carriers, according to the U.S. Bureau of Transportation Statistics.
More Rental Operations

Southwest Airlines Selects CarTrawler For Its Car Rental Booking Platform
The platform is designed to allow customers to compare and book rental vehicles more easily during the travel booking process.
Read More →
Cross-Pressures, Evolving Trends Drive 2026 Rental Car Industry
A combination of cautious economic behavior, shifts in the rental vehicle market, and technological influences are shaping car rental operator decisions.
Read More →
Government Affairs Executive Wins Leading Rental Car Industry Award
Robert Muhs started in the car rental industry with Avis Budget Group two years before the first International Car Rental Show.
Read More →
Green Motion Expands Its African Presence with Mozambique Launch
This new rental car outlet reflects the growing demand for reliable transportation and the emphasis on sustainable travel across the continent.
Read More →
RentalMatics, GeoInt Partner On Rental Car Speed Tracking Tech
Rental operators can now detect and act on speeding while vehicles are still on rent, thereby reducing fines, admin workload, vehicle wear, and safety risks.
Read More →
NextPass Expands Toll Payment Service to Highway In Toronto
Fleets and consumer can use a transponder-less option when traveling between Canada and the U.S.
Read More →
Zubie, PurCo Integrate Rental Damage Detection With Telematics
The combination brings actionable vehicle insights into PurCo’s PurInspect platform, improving damage detection and operational efficiency for rental fleets.
Read More →
U.S. Length Of Rental (LOR) Declines Slightly in Q1 2026
LOR related to insurance claims overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.
Read More →
Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services
The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.
Read More →
Why Car Rental Can No Longer Run On Workarounds
The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.
Read More →
