Ancillary Revenues On Rise; Fuel, Labor And Maintenance Costs Pressure Margins
Revenue growth has recovered to pre-recession levels and the U.S. airline industry is expected to maintain profitability in 2013, according to Tailwinds, a report on the airline industry from PwC US. However, while the industry has become better at managing capacity and generating ancillary revenues, it faces rising costs for fuel, labor and maintenance. To achieve profitability under these conditions, airlines are focused on operating more efficiently and securing new revenue streams.