Ryanair's €2.50 bag fee launched as a wash. Now extras earn €4.99B a year.
In 2006 Ryanair charged €2.50 per checked bag and cut every fare by €2.50. By the year to March 2026, ancillary revenue was €4.99 billion. Model a new fee over a decade, not a year.
Transcript
€4.99 billion. That is what Ryanair took in during its fiscal year ended March 2026 from extras, on top of the seat. It started with one suitcase.
On March 16, 2006, Ryanair started charging €2.50 per checked bag. In the same breath, it cut every fare by €2.50, and called the whole thing revenue neutral.
Chief executive Michael O'Leary did not sell it as a profit engine. He said hauling bags around an airport belonged to the era of ocean liners. The goal was to get passengers to carry on.
By the year ended March 2012, Ryanair's ancillary revenue was already €886 million, against €3,439 million from scheduled fares.
In recent years, extras have held near a third of Ryanair's total revenue: 35.7% in fiscal 2023, 32% in 2024, and 33.8% in 2025. Near a third, and no higher.
A fee launched as a wash became a second business. One airline does not prove every add-on will grow like this. But when you price a new charge, model where it could go over a decade, not just in year one.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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