Delta, Southwest in top 10 for ancillary revenue

Atlanta-based Delta Air Lines and Dallas-based Southwest Airlines were both among the top 10 airlines in collecting ancillary revenue from extra fees and other sources in 2011, according to a new report.

In the report released Monday by consultancy IdeaWorksCompany and travel technology company Amadeus, Delta ranked second with $2.5 billion in ancillary revenue collections last year, behind United Continental in the No. 1 spot. However, Miramar, Fla.-based Spirit Airlines ranked highest in ancillary revenue as a percentage of total revenue.

Among the top sources of ancillary revenue for many major carriers are baggage fees and sales of frequent flier miles to credit card partners.

Southwest Airlines, which acquired AirTran Airways and began flying to Atlanta this year, does not charge baggage fees on Southwest flights, but it does still charge baggage fees on AirTran flights. Southwest, which came in fifth with $1.2 billion in ancillary revenue, has also increased its take through early boarding fees and other fees, as well as its revamped frequent flier program.

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