Implementing Machine Learning Strategies: A Case for Ancillary Revenue in Air Cargo

When discussing airline ancillary revenue, the first thing that comes to mind is all the extras you pay during your travel experience; checked bags, extra leg room, wi-fi, seat selection and more. This is an vital source of revenue for an airline as it allows to not only diversify the revenue stream, but also represents an opportunity to hedge against some of the innate uncertainty of the industry.

Economic downturns, high operating costs, and downward pressure on ticket fees are some of the reasons why ancillary revenue has become a great strategy to bring a level of stability which the airlines can count on.

However, airlines have more businesses than transporting passengers. The pandemic darling, the cargo business has its fare share of economic challenges. During the pandemic, cargo showed itself as the saving grace in many airlines that reacted quickly and knew how to leverage their network and equipment.