American Airlines Group Inc (NASDAQ:AAL) and Delta Air Lines, Inc. (NYSE:DAL) are getting smart at retailing faster than you might think as they continue to rake in huge numbers in ancillary fees. CNBC‘s Phil LeBeau revealed that the number for 2014 that the airlines are raking in fees stands at a staggering $50 billion.
“[…] This is new analytics coming from IdeaWorks and CarTrawler. They track this internationally over the last 5 years and the numbers for 2014, the industry, the Airline industry worldwide is expected to bring in $49.9 billion in ancillary fee revenue. That’s a 17% increase compared to last year and if you factor in all the people flying around the world and average it out, it comes to about all of us paying $15.2 in ancillary fee […],” reported LeBeau.
The days when American Airlines Group Inc (NASDAQ:AAL) and Delta Air Lines, Inc. (NYSE:DAL) used to run in losses seem to buried in the past now as they have found a new way to tap additional revenues.
These numbers will also boost the investor confidence as far as the Airline industry is concerned. If it were just the jet fuel prices contributing to a heavier bottom line for American Airlines Group Inc (NASDAQ:AAL) and Delta Air Lines, Inc. (NYSE:DAL) and the other best airlines in the world, the investors would still have some reservations, since the fuel prices are abnormally low owing to geo-political situation and could bounce back anytime those issues are resolved.
“[…] When you look at the Airline index, people look at it and they say, well, they are benefitting because of lower jet fuel prices. It’s not just because of jet fuel prices. The airlines are becoming better retailers, particularly at the front end, when you are booking a ticket […],” said LeBeau.
Both American Airlines Group Inc (NASDAQ:AAL) and Delta Air Lines, Inc. (NYSE:DAL) seem to be doing pretty well as far as their stock prices are concerned. American Airlines Group Inc (NASDAQ:AAL) is currently up 3% for the day, trading at $43.24 and Delta Air Lines, Inc. (NYSE:DAL) is trading at $42.06, up about 3.56% for the day.
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