Jeff Greenberg | Universal Images Group | Getty Images
Since the pandemic, passengers have shown airlines they are willing to pay to sit at the relatively spacious front of the cabin. This means that many seats are already full, making it difficult for frequent travelers to get a free upgrade to the front of the plane.
And ranks of Frequent flyers Swollen all the way with elite status Airport lounge In a packed first boarding group, that means more competition for those seats. Expect even more crowds during the holidays later in the year, which airlines predict will set another record.
Even in the off-season as early as 2025, executives are predicting strong demand. U.S. airline capacity in the first quarter will increase about 1 percent from a year earlier, according to aviation data firm Serium.
“We’re probably seeing our best unit revenue ever on the transatlantic. [routes]For example, in the winter season,” said Delta Airlines President Glenn Hoenstein at Investors Day in November.
The price difference between first class and coach varies, of course, based on distance, demand, time of year and even time of day. For example, a round-trip ticket on United Airlines Flights from its hub in Newark, New Jersey, to Los Angeles International Airport during the first week of February were $347 in standard economy and $1,791 in the carrier’s Polaris cabin, which has lie-flat seats but access to the international business class lounge. is not .
American AirlinesA nonstop flight from New York to Paris during Easter week 2025 was $1,104 in coach and $3,038 in the airline’s flagship business class.
A view of the Delta Sky Club at Los Angeles International Airport, Sept. 2, 2022.
Aaron P Bauer-Griffin | GC Images | Getty Images
Billions of dollars in revenue that keep airlines afloat hang in the balance. Airline loyalty programs are a cash cow, and it’s important to get the balance right between perks like free upgrades and cash back.
In recent years, airlines have changed the requirements for earning status, including award costs and not just distance flown. They have also increased the amount that passengers need to spend to anoint elite status. Next year, customers will have to High cost on United to get status. However, on Thursday, American said it would keep its requirements the same for the next earnings year, which begins in March.
From giving to paying
About 15 years ago, passengers were paying for just 12 percent of Delta’s domestic first-class seats. Now, it’s close to 75% and climbing, Hevinstein told investors last month.
“We gave them based on the frequent flyer system,” Hevenstein said of first-class seats from 2010 and earlier. “The incentive was to spend as little as possible, fly as much as possible and upgrade as often as possible. This led to our most valuable products being the most damage leaders.”
That’s now reversed for Delta, he said, because more money is going to the front of the cabin. The carrier generates 43% of its revenue from main cabin economy tickets, down from a 60% share in 2010.
This trend is reflected across the industry from the most profitable carriers, Delta, to discounters such as Frontier Airlineswhich is increasing the room. First class seats in front of its Airbus fleet in 2025. on wednesday, Jet Blue Airways Said it will introduce two or three queues. Home business classes On planes that don’t have advanced mint business class with lie-flat seats, this is called a “junior mint”.
A day before Alaska Airlines What is the announcement? Retrofit Some of its planes are equipped with premium seats as it prepares for new international flights after acquiring Hawaiian Airlines earlier this year, with revenue from premium seats outstripping standard economy. .
“You see the Airbus 330s and Boeing 787s are lower in business class and they lack an international premium economy cabin,” Alaska Chief Commercial Officer Andrew Harrison said at an investor day in New York on Tuesday. ” “So we expect that after 2027, you’ll see our premium mix continue to grow.”
The Delta Sky Club passenger lounge inside Hartsfield-Jackson Atlanta International Airport, Sept. 5, 2019.
Jeff Greenberg | Universal Images Group | Getty Images
Big business
Airlines are now racing to add first-class sections or large international business classes with large screens and flat-bed seats with closed doors.
“We’ve seen more paying demand for premium cabins than ever before,” said Scott Chandler, vice president of revenue management at American Airlines. “More and more people want a premium cabin experience.”
Chandler said American has worked over the past few years to make it easier for customers to buy up to premium cabins, with post-purchase options to upgrade to first class or other cabins like premium economy.
is american retrofitting To add more premium seating to some of its longer-range aircraft, like other carriers, ditching first class entirely on some to add larger international business class cabins with new seats with sliding doors. will So did Delta and United Their premium offering increased To keep up with customers willing to pay for premium seats.
“They’re doing everything they can to get you to pay for their premium products,” said Henry Harteveld, founder of the travel consulting firm Atmosphere Research Group. That’s exactly what they should be doing. Don’t buy and then expect a “salesperson”. [to] Color this product and get a designer bag for free.”
Southwest Airlines has adopted its own method. In 2026, it plans to fly with multiple rows. Extra legroom seatsRetrofit its standard coach-only cabins that it has flown for more than half a century and do away with open seating.
CEO Bob Jordan said it’s partly a “generational shift.”
“What we’re seeing is our younger customers are looking for a little more premium,” he said in an interview this week. “A lot of it is a change in mindset, wanting to spend more on travel and less on other things.
But the airline decided to keep the number of seats on its planes pretty much the same and, after surveying customers and weighing the cost of losing space for more seats on board, add first class like other carriers. not doing
For first class, Jordan said, “You’re talking about an oven, you’re talking about food, you’re talking about provisions. It’s a huge investment and a huge leap.”
“But never say never,” he said.