CEO and Chief Investment Officer Frank Holmes joined CNBC Asia from New York to discuss the latest updates in the airline industry and Delta’s third quarter earnings. Flight cancellations due to the grounded Boeing 737 MAX jets have plagued major carriers such as Southwest and American, however, rising growth from ancillary fees have buoyed airlines, according to Frank. Delta renewed its profitable partnership with American Express and expects to generate nearly $7 billion by 2023 – just one example of airlines growing revenue through ancillary, or non-ticket, sources.
Frank added that he remains “pretty constructive and bullish on the industry.” For the full story watch the interview here!
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Ancillary fees/revenue, in the airline industry, is revenue from non-ticket sources, such a baggage fees and on-board food and services, and has become an important financial component for low-cost carriers.
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