For decades, airlines prioritized cramming as many seats as possible into economy class. Now, in a global pursuit of high-spending passengers like Natalie Rasmussen, they are redirecting their efforts toward offering more spacious and luxurious seating options.
Natalie Rasmussen, an application scientist residing near San Jose, California, is among the growing number of travelers who refuse to endure long-haul flights in standard coach seats. “I’m not going to fly to Europe in 36B. 36B is a bra size, not an airline seat,” she declares. Instead, Rasmussen opts for business class or premium economy, a newer cabin class that provides extra legroom, larger seat-back screens, and other amenities, though not the lie-flat seats found in the premium tiers.
The demand for premium seats has become essential for airlines as standard coach fares dwindle and business travel’s post-pandemic recovery levels off. Amid these trends, passengers have demonstrated a willingness to pay for additional onboard space following the COVID-19 pandemic.
For Rasmussen, the choice between comfort and cost is clear. She recently paid $500 to upgrade to Delta Air Lines’ highest-end cabin, Delta One, for her return trip from Europe. The allure of a lie-flat bed, a spacious entertainment screen, and a privacy door prompted her to make the switch.
This shift toward premium seating is reshaping the aviation landscape. The dominance of economy seats on routes between the U.S. and Europe has slightly decreased, with business-class seats gaining a small share. Notably, the premium economy class has witnessed remarkable growth, now constituting 6.4% of seats sold, up from 4.2% five years ago, as first-class shares have declined.
Airlines such as Delta, JetBlue Airways, United Airlines, American Airlines, Finnair, and Lufthansa are investing in upgraded first-class seats, suites with sliding doors, and premium economy cabins. These innovations target high-spending travelers looking for an enhanced in-flight experience. Singapore Airlines even offers full-height doors, companion beds, and spacious cabins reminiscent of small hotel rooms in their first-class offerings.
As Edward Dryden, President of the interiors unit of Collins Aerospace, a top aircraft seat manufacturer, notes, airlines are now selling more than just transportation; they’re selling an experience. This paradigm shift underscores the significance of in-cabin comfort and amenities.
The premium seat sector caters to a diverse price range. A premium economy ticket on Delta between New York and Paris could be priced at $3,015, compared to a regular economy ticket at $980. United Airlines offers a similar itinerary at nearly $1,850 for premium economy and $912 for standard coach. Business class prices easily exceed $5,000 for the same route.
Though the premium seat market represents a fraction of the broader aircraft seating market valued at $2.6 billion, its growth is evident. Delta anticipates that premium ticket sales will comprise 35% of its expected record revenue of $19 billion in 2024. American Airlines also plans to enhance its premium seating options, increasing long-haul premium seats by over 45% by 2026.
As airlines strive to strike a balance between various seating options, Virgin Atlantic CEO Shai Weiss emphasizes the need for tailored configurations. Airlines must align seating layouts with route popularity and passenger preferences, ensuring that every traveler’s comfort and choice are prioritized.
In this pursuit of passenger satisfaction and loyalty, airlines are redefining the flying experience and recognizing that the journey itself can be as rewarding as the destination.
By Impact Lab
