SOURCE: The Bedford Report

The Bedford Report

June 01, 2011 08:16 ET

US Airways and Spirit Airlines Benefit From New Revenue Drivers

The Bedford Report Provides Analyst Research on US Airways & Spirit Airlines

NEW YORK, NY--(Marketwire - Jun 1, 2011) - In recent quarters, Airlines have managed to post impressive profits despite rising fuel prices pushing operational costs higher and competitive pressures holding down air fares. Studies show that carriers have uncovered new revenue drivers via ancillary sources. According to Ian Wheeler, head of distribution and marketing at airline-technology provider Amadeus IT Group SA, "Ancillary revenue is a growth market and it is here to stay." The Bedford Report examines the outlook for companies in the Major Airlines Industry and provides research reports on US Airways Group, Inc. (NYSE: LCC) and Spirit Airlines, Inc. (NASDAQ: SAVE). Access to the full company reports can be found at:

Citing a study from Amadeus IT Group SA and IdeaWorks Co, The Wall Street Journal reported that airlines increased revenue by a total of almost $22 billion last year through adding special fees to ticket sales. A growing number of airlines have been charging for services once included in ticket prices, such as for baggage, food and in-flight entertainment. They are also earning revenue from services previously restricted to loyal customers such as access to airport lounges.

The Bedford Report releases regular market updates on the Major Airlines Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

American, Continental, Delta, United and US Airways all charge $25 for the first bag and $35 for the second piece of luggage. Continental, Delta, United and US Airways give a $2 discount off the first bag and $3 off the second if you pre-book your luggage online.

Spirit Airlines, who focuses on flights around Florida, Latin America and the Caribbean, earns in excess of 22 percent of its revenues through ancillary sources. Budget carriers began charging for extras more than a decade ago as the rise of Internet ticket sales allowed them to split elements more easily and charge passengers directly.

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