Passengers disembark from the business class seating area of an American Airlines flight at London Heathrow Airport on August 14, 2018.
Jeff Greenberg | Universal Image Group | Getty Images
Cheap seats are no longer enough to satisfy airline passengers.
Since the start of the pandemic, travelers have told airlines they are willing to pay to sit at the front of the cabin, which is relatively spacious. That means many seats are already full, making it difficult for frequent flyers to get free upgrades to seats at the front of the plane.
and ranks Frequent flyer People with elite status from airport lounge to the crowded first boarding group, which means competition for those seats is even fiercer. More crowds are expected during the year-end holiday period, which airlines expect will hit a new record.
Even during the off-season in early 2025, executives forecast strong demand. U.S. airlines will increase first-quarter capacity by about 1% compared with the same period last year, according to aviation data firm Cirium.
“We’ll probably see our best unit revenue on the transatlantic (route), for example, in the middle of winter,” said Delta Air Lines President Glen Hauenstein at the November investor day.
Of course, the price difference between first class and economy will vary based on distance, demand, time of year and even time of day. For example, a round-trip ticket United Airlines In the first week of February, fares from Newark, N.J., to Los Angeles International Airport were $347 for standard economy and $1,791 for Polaris cabins, which feature lie-flat seats but are not available. International business class lounge.
American AirlinesNonstop flights from New York to Paris during Easter Week 2025 cost $1,104 in economy class, and the airline’s flagship business class fare is $3,038.
A view of the Delta Sky Club at Los Angeles International Airport on September 2, 2022.
Aaron P | Ball Griffin | GC Images | Getty Images
Billions of dollars in revenue to keep the airline afloat are still up in the air. Airline loyalty programs are cash cows, and striking a balance between free upgrades and perks like earning cash is key.
In recent years, airlines have changed the requirements for earning status, rewarding spending rather than just distance flown. They also increased the amount the Flyers need to spend to achieve elite status. Next year, customers will have to spend more money Earn status at Manchester United. On Thursday, however, American Airlines said it would keep the same requirements in place for its next earnings year, which starts in March.
From giveaway to payment
About 15 years ago, only 12% of passengers paid for domestic first-class seats on Delta. That’s now close to 75% and rising, Hauenstein told investors last month.
“We gave away these seats under the frequent flyer program,” Hauenstein said of the first-class seats in 2010 and earlier. “Our motivation is to spend as little money as possible, fly for as long as possible, and upgrade as often as possible. This results in our most valuable product being the largest loss leader.”
Now the situation is reversed at Delta, he said, as more money is flowing to the front of the cabin. 43% of the airline’s revenue comes from economy class tickets, down from 60% share in 2010.
The trend is sweeping across the industry, from the most profitable airline, Delta Air Lines, to companies such as Frontier Airlineswhich adds more space First class seats 2025 will be the frontline for the Airbus fleet. Wednesday, JetBlue Airways Said it would introduce two or three rows Domestic business class On aircraft that do not have the highest level of Mint business class with lie-flat seats, it is called “Junior Mint”.
one day in advance Alaska Airlines announced that Transformation After acquiring Hawaiian Airlines earlier this year, the airline is preparing to launch new international flights, with some aircraft equipped with premium seats that generate more revenue than standard economy seats.
“The Airbus 330 and Boeing 787 have lower business class indexes and a lack of international premium economy class,” Alaska Commercial Director Andrew Harrison said at an investor day event in New York on Tuesday. “So we expect Beyond 2027, you will see continued growth in our premium product portfolio.”
Delta Sky Club passenger lounge at Hartsfield-Jackson Atlanta International Airport on September 5, 2019.
Jeff Greenberg | Universal Image Group | Getty Images
bigger business
Airlines are now racing to add first-class cabins or larger international business class cabins, complete with larger screens and doors that close off flat-bed seats.
“We’re seeing even more paid demand for premium cabins than before the pandemic,” said Scott Chandler, vice president of revenue management at American Airlines. “More people want the premium cabin experience.”
Chandler said American has been working over the past few years to make it easier for customers to purchase more expensive cabins and, after purchase, choose to upgrade to other cabins such as first class or premium economy.
America is Transformation Like other airlines, some of the company’s longer-range aircraft are equipped with more premium seats, with some jets ditching first class altogether in favor of larger international business class cabins that will have sliding doors. of new seats. Delta Air Lines and United Airlines also increased their quality products Keep up with customers who want to pay for more expensive seats.
“They’re doing everything they can to entice you to buy their premium product. That’s absolutely what they should be doing,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel consultancy. Customers don’t buy store brand merchandise at a department store and then expect “the salesperson to call the product and give you a free designer bag.”
Southwest Airlines took his own approach. In 2026, it plans to fly with multiple rows of aircraft Seats with extra legroomrevamping its standard cabin that has been flying for more than half a century and eliminating open seats.
CEO Bob Jordan said this was partly a “generational shift.”
“What we’re seeing is younger customers looking for a little bit more premium,” he said in an interview this week. “A lot of it is a mindset shift, being willing to spend more on travel and less on other things.
But after surveying customers and weighing the cost of losing space by adding more seats on board, the airline decided to keep the number of seats on its planes roughly similar and not add first class as other airlines have done.
Of First Class, Jordan said: “You’re talking about ovens, you’re talking about meals, you’re talking about supplies. It’s a huge capital investment and a huge leap forward.”
“But never say never,” he said.
