How did airlines make money before the ancillary revenue boom?
Hi everyone, pre 2005 I had very little knowledge of the airline industry and only since I got my job in 2005 as a ground handler I began to take a serious interest in the sector. But I'm wondering if someone could explain to me how airlines made money pre baggage charges, check-in charges, boarding charges etc..
I remember buying a Ryanair flight for €9 in 2003 from Cork to London Stansted included was a 20kg bag and there was no other hidden charges at that time. Surely that was unprofitable? The flight was full however. The same with easyJet they had no baggage charges until August 2007 if I remember, I'm just thinking pre 2007 fares must have been very low yield. Is there something I'm missing? because now its the norm to pay nearly double the cost of the flight when you include credit card fee's, baggage charges etc. I suppose pre-recession had a lot to do with it?