Sunday, 13 April 2025

Airlines make billions from these add on's

For most of aviation history, your ticket included everything- and we mean everything. You showed up at the airport, checked in for your flight, and were assigned a seat, FOR FREE.
No extra charges like suitcases, no complicated choices.

But that all changed when airlines started struggling with thin margins. Fuel prices soared, competition grew, and profits shrank. Airlines needed new ways to make money, and fast. Instead of raising ticket prices (which turns customers away), they found a better solution: Charge small fees for things people care about but weren't used to paying for.

One of the easiest targets? Seat selection.

It costs the airline nothing to let you choose. But passengers deeply care about where they sit. People hate the middle seat. People want to sit with their kids. People love extra legroom or getting off the plane first. And airlines knew it.

By charging for seat choice, airlines turned passenger preference into profit. lt's not about paying for something new. It's about paying to avoid discomfort. Today, most airlines let you pick a seat, for a fee. Window? Aisle? Closer to the front? It will cost you.

It might cost you anywhere from $10 to $100+, depending on the route and the airline. If you don't pay, you'll be assigned a seat randomly and that means no control, and you could possibly get a middle seat, or sitting away from your travel companion.

People end up paying, not because they want luxury, but because they want control, comfort, and certainty. This small fee adds up fast, multiply it by millions of passengers and suddenly, it's not pocket change, it's a major revenue stream.

In 2023, airlines made $127.9 billion from "extras" like seat selection, bags, food, and Wi-Fi.

Seat selection is one of the most profitable for the airline because there's no cost involved to them. Some budget airlines make over 40% of their total revenue from these extras. That means for some airlines, the base ticket is just bait to get you in, the real money is in the add-ons.

Even traditional full-service quality airlines have joined in.
Why?
Because passengers got used to it, when something becomes normal, resistance fades.

The real genius? It doesn't feel like a big upsell. It feels like a small, optional upgrade, but millions of people choose it every single day. Passengers feel like they're buying a better experience.

Airlines know they're selling the illusion of choice and turning it into pure profit.

The end result?
You pay more without noticing and airlines stay profitable without increasing base fares.


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