Airlines Confidential · Wednesday, August 12, 2026
Jay Sorensen, President of IdeaWorks Company, highlighted the critical role of ancillary revenue in airline profitability, especially during periods of high oil prices. He noted that without this additional income, airlines would struggle to remain profitable, drawing parallels to the introduction of checked baggage fees in 2008.
“I was struck once again, Jay, in these high oil price times, at just how important ancillary revenue is to airlines.”
“Without that revenue, airlines would be cooked right now in terms of profits.”
“So, this period we're in, it did remind me of the start of check baggage fees, which came in response to a big oil shock and really saved airlines back then.”