At 17.5% CAGR, the South & Central America Airline Ancillary Services Market is projected to be worth US$ 33,185.87 million by 2030, says Business Market Insights

According to Business Market Insights’ research, the South & Central America airline ancillary services market was valued at US$ 9,111.90 million in 2022 and is expected to reach US$ 33,185.87 million by 2030, registering a CAGR of 17.5% 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 South & Central America airline ancillary services market expansion.             

Many start-ups are entering the market with advanced services and investing a huge amount to fulfill the growing demand of their customers. In the global aviation industry, low-cost carriers are gaining immense importance. The robust business models for ticketing, airport services, and onboard services facilitate the low-cost carriers to attract passengers from all classes of society. The increasing demand from passengers for additional services, such as inflight food and beverages, Wi-Fi, and retail, has encouraged several start-ups to come up with additional services to entertain passengers during a long journey. Air France adopted Shoppertainment to offer well-equipped Wi-Fi connectivity to its passengers during long and medium-haul flight journeys. Thus, the implementation of such initiatives by start-ups to provide additional services to the passengers will most likely boost the South & Central America airline ancillary services market.

On the contrary, cost cutting on airline services is impacting negatively on the growth of South & Central America airline ancillary services market. 

Based on type, the South & Central America 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 60.0% market share in 2022, amassing US$ 5.47 billion. It is projected to garner US$ 18.51 billion by 2030 to expand at 16.5% CAGR during 2022–2030.

Based carrier type, the South & Central America airline ancillary services market is bifurcated into full-service carriers and low-cost carriers. The full-service carriers segment held 71.4% share of South & Central America airline ancillary services market in 2022, amassing US$ 6.51 billion. It is projected to garner US$ 22.67 billion by 2030 to expand at 16.9% CAGR during 2022–2030.

Based on country, the South & Central America airline ancillary services market has been categorized into Brazil, Argentina, and the Rest of South & Central America.  Our regional analysis states that Brazil captured 62.2% share of South & Central America airline ancillary services market in 2022. It was assessed at US$ 5.67 billion in 2022 and is likely to hit US$ 20.45 billion by 2030, exhibiting a CAGR of 17.4% CAGR during 2022–2030.            

Key players operating in the South & Central America airline ancillary services market are Air France KLM SA, Delta Air Lines Inc, Deutsche Lufthansa AG, and United Airlines Holdings Inc, among others.

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