Unlocking Profits at 30,000 Feet: The Future of Airline Ancillary Revenue

In an industry poised to surpass $1 trillion in total revenue for the first time in 2025, airlines are looking beyond ticket sales to fuel their growth. With passenger revenues expected to reach $705 billion, a staggering $145 billion will come from ancillary services, creating boundless opportunities for airlines willing to innovate beyond the traditional flight experience.

A digital revolution above the clouds

Today's air travelers expect their digital lives to continue seamlessly at 30,000 feet. This shift in expectations isn't just changing passenger satisfaction metrics – it's opening new revenue frontiers for forward-thinking airlines.

22% of passengers now consider connectivity as critical as ticket prices when choosing an airline. 

With one-third of aircraft connected today and half expected to be connected by 2030, the cabin environment is rapidly evolving into a fully connected space, transforming it into a dynamic digital marketplace with endless possibilities.

The $5 billion opportunity

The in-flight retail market is expected to grow by approximately 42% from $3.5 billion in 2024 to over $5 billion by 2030. 

Average passenger in-flight spending is projected to grow from $90 to $120 per passenger, a 30% increase that signals growing consumer comfort with in-flight purchases. As passengers seek a seamless extension of their digital spending habits in the air, airlines have a unique opportunity to capitalize on this shift.

Success hinges on a strategic blend of merchandising, seamless payment solutions, and personalized offerings—transforming the cabin from a mere mode of transport into a curated retail space that enhances the journey while unlocking substantial revenue potential.

Beyond trolley: reimagining the onboard experience

While low-cost carriers have traditionally focused on basics like seat selection, extra baggage, and travel insurance, the future belongs to airlines offering expanded services:

• Destination-specific products and experiences
• Seamless payment experiences with digital wallets
• Premium IFEC options
• Personalized offers based on passenger data

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Ancillary revenues are a key driver of growth and profitability. To maximize these opportunities, it’s essential to stay informed about the latest market trends and adopt the best strategies. In our latest report, we unveil the major industry trends along with our six essential commandments to help you optimize your strategy and maintain a competitive edge.