At 18.4% CAGR, the Middle East & Africa Airline Ancillary Services Market is projected to be worth US$ 68.82 billion by 2030, says Business Market Insights

According to Business Market Insights’ research, the Middle East & Africa airline ancillary services market was valued at US$ 17.85 billion in 2022 and is expected to reach US$ 68.82 billion by 2030, registering a CAGR of 18.4% from 2022 to 2030. Rising middle class to contribute to increased demand for air travel, growing contribution of frequent flyer program (FFP) towards enhancing the ancillary revenue, and in-flight retail partnerships are the critical factors attributed to the Middle East & Africa airline ancillary services market expansion.             

The frequent flyer program (FFP) is a loyal and long-lasting way for airline authorities to maintain a good relationship with their regular passengers. With this program, the airlines form several partnership arrangements and cooperative schemes. These include code-sharing agreements resulting in competitive fares and variations in the occurrence of services to increase profits and market share. The airlines constantly award reward points to its frequent flyers through cashback rewards, travel insurance, emergency medical services, and access to airport lounges. Similarly, Travel Clubs worldwide also offer advanced services to enhance airline brands by converting brand affinity into brand equity and adding new ancillary revenue from subscription fees. Thus, such programs drive the growth of the Middle East & Africa airline ancillary services market.

On the contrary, cost cutting on airline services is impacting negatively on the growth of Middle East & Africa airline ancillary services market. 

Based on type, the Middle East & Africa airline ancillary services market is divided into baggage fees, on-board retail and a la carte services, airline retail, and FFP mile sales. The baggage fees segment held 54.4% market share in 2022, amassing US$ 9.71 billion. It is projected to garner US$ 35.67 billion by 2030 to expand at 17.7% CAGR during 2022–2030.

Based carrier type, the Middle East & Africa airline ancillary services market is bifurcated into full-service carriers and low-cost carriers. The full-service carriers segment held 74.6% share of Middle East & Africa airline ancillary services market in 2022, amassing US$ 13.31 billion. It is projected to garner US$ 47.47 billion by 2030 to expand at 17.2% CAGR during 2022–2030.

Based on country, the Middle East & Africa airline ancillary services market has been categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa.  Our regional analysis states that the UAE captured 54.9% share of Middle East & Africa airline ancillary services market in 2022. It was assessed at US$ 9.80 billion in 2022 and is likely to hit US$ 36.37 billion by 2030, exhibiting a CAGR of 17.8% CAGR during 2022–2030.            

Key players operating in the Middle East & Africa airline ancillary services market are Air France KLM SA, Delta Air Lines Inc, Deutsche Lufthansa AG, The Emirates, and United Airlines Holdings Inc, among others.

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