Airlines are betting that more passengers will pay for an upgrade to their flight experience, with some carriers fitting roomier seats, bringing in Michelin-starred chefs to design onboard menus and also investing in elite airport lounges.
Some airlines envisage up to 70% of passengers paying for enhanced options, if not first-or business class. That shift could mean fewer standard economy seats on many flights.
The war in Iran has pushed up jet fuel costs, but airlines see premium travel as a way to boost profits over the long term.
Business class seats can each take up floor space equivalent to four basic-level seats, but can be priced five or six times higher, said Volodymyr Bilotka, a professor at Purdue University and a specialist in aviation economics.
“Airlines have traditionally been investing quite a lot into the premium offerings because the profit margins are significantly higher,” Bilotka told the AFP news agency.
In the most recent quarter, American Airlines said premium revenue increased 18.5% year-over-year, four points better than the main cabin. American executives said the boost has been a bright spot in a travel market complicated by the jet fuel spike.
“Premium products generate roughly half of the company’s ticket revenue on approximately 30% of seats today,” American said.
Besides the traditional differentiation between the main cabin and business class, customers may now pay as much as $200 (€179) for more legroom or the ability to sit at the front of the plane and disembark first.
Premium’s steady growth
Since 2020, the number of premium seats on US flights has risen 33%, more than double the growth of mainline seats, according to travel news site Skift.
United Airlines more than doubled its premium-seat capacity between 2015 and 2026, the airline told AFP, adding that it plans additional options.
Launching in 2027, United’s new “Relax Row” will allow passengers in economy class to turn a row of three seats on some wider Boeing planes into a couch they can sleep or lounge on after takeoff.
United has also unveiled its new Economy Plus option that allows customers to forgo having a passenger in the dreaded middle seat. It plans to begin this option on some flights at the end of 2026.
‘More premium experiences’
JetBlue announced the launch of BlueFirst, a new first-class service on domestic flights. “Customers are increasingly looking for more premium experiences,” said JetBlue CEO Joanna Geraghty.
Meanwhile, Delta has invested in Delta One, a revamped luxury option, with premium wine, “top-of-the line” food like the Wagyu burger and larger screens for entertainment.
To assist with the menu, Delta partnered with Simon Hulstone, chef of Michelin-starred restaurant The Elephant in Torquay, UK, and Andrea Robinson, an award-winning sommelier.
The company plans the service for new Airbus A350-1000 planes, with about 150 premium seats and 161 seats in economy.
“Twenty years ago, 90% of the seats were main cabin,” said Ekrem Dimbiloglu, Delta’s managing director for onboard strategy and experience, adding that the share of premium seats could soon represent as much as 70% on some Delta flights.
In October, British Airways announced that the top level of the two-tier A380 would be entirely composed of premium seats. Then this month, Singapore Airlines revealed that it is investing €1.4 billion to upgrade its luxury long-haul cabins – including the largest double bed in commercial aviation in first class.
Some airlines already offer services without any economy seats, such as all-business class carriers BeOnd and La Compagnie, while Jet2 recently announced a new charter service which will use a specially configured Boeing 737-800NG with 76 business class seats.
A rise in premium amenities
Consultancy Cirium estimates that premium seats among the 42 carriers in the three major airline alliances (SkyTeam, Oneworld and Star Alliance) and Middle East carriers now represent 19% of total volume compared with 17.1% in 2019.
Other new options include giving customers choice among meal options prior to boarding and free wifi. There have also been a slew of announcements of new and beautified airport lounges, including by Southwest Airlines, which was once known as a discount carrier.
But the increasing tendency of airlines to market to customers who can afford premium amenities could open the door to a discount carrier, although higher fuel costs have added to the challenges facing all airlines.