Auto Rental News
MenuMENU
SearchSEARCH

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.

by Staff
May 26, 2010
2 min to read


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.

Ad Loading...

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.

Ad Loading...

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

Back view of a remote driver in front of a screen delivering a car to a location.

Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030

A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.

Read More →
green and blue bar graphs compare fleet sales June 2025 versus June 2026
Fleet Acquisitionby Martin RomjueJuly 8, 2026

Rental Car Fleet Sales Show Mid-Year Strength

June gains ensured rental fleets closed out the first half of 2026 in positive territory.

Read More →
Close up of a row of white CUVs in the Surprice Mobility fleet at the Milan airport.

Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport

The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.

Read More →
Ad Loading...
Julian Gritsch with an MBA class in a classroom.

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry

Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.

Read More →
Green Motion team with banner bearing Japanese flag.

Green Motion Expands Into Japan With Master Franchise Agreement

Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.

Read More →
ACRA Chairman Sharky Laguana on stage at the ICRS event in Grapevine, Texas.
Legal & Legislativeby Martin RomjueJune 24, 2026

ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future

The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.

Read More →
Ad Loading...
Light blue horizontal bar graphs on a chart showing World Cup-related rental car booking trends.
Rental OperationsJune 23, 2026

World Cup Travel Data Shows Longer Car Rentals and More One-Ways

A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.

Read More →
Side view of ICRS speaker Sanchit Garg at podium in front of a floor lit red curtain
Rental Operationsby Martin RomjueJune 22, 2026

A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker

Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.

Read More →
Photos of Martin Romjue and Denis Gjoni on opposite sides of large headline for the video.
Rental Operationsby Martin RomjueJune 17, 2026

Stop Losing Money On Rental Tolls

Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.

Read More →
Ad Loading...
Richard Lowden gesturing on stage in front of a red curtain at the Gaylord Texan Resort near Dallas.
Rental Operationsby Martin RomjueJune 12, 2026

Rethink The Future To Avert A Race To The Bottom

Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.

Read More →
Ad Loading...