International airlines are all-in on fancy first-class seats, even as US carriers focus only on business for long-haul flights

08.11.2024 - 03:55 / insider.com / Badr Mohammed Al-Meer

Delta Air Lines and United Airlines years ago eliminated international first class on their planes, and American Airlines is following suit.

They deemed business class more lucrative for long-haul flights. It can fit more seats and is more marketable to more people than a costly first-class ticket.

But many global carriers in Europe, Asia, and the Middle East are taking the opposite approach, chasing dollar signs with new first-class cabins amid a post-pandemic industry shift that's seen increasing demand for luxury at the front of the plane.

This includes multimillion-dollar revamp plans in a bid to lure more customers, keep up with the competition, and boost revenue and reputations. While these carriers still have business class, true first class remains a money-maker despite taking up the least amount of cabin real estate.

Qatar Airways CEO Badr Mohammed Al Meer told CNBC in March that the airline's first class is here to stay. This was a U-turn from his predecessor, who said in 2023 that first class wasn't necessary with that carrier's famous Q-Suite business class.

Five-star Singapore Airlines also plans to launch a new first class as part of an over $800 million cabin overhaul project. Air France, Swiss International Air Lines, and Lufthansa are also in the mix, among others.

A study from Mighty Travels Premium, published in October, showed that the first-class resurgence is largely corporate travelers from monied Fortune 500 companies.

The study, which analyzed airline revenue data, saw a jump in international bookings from affluent leisure individuals willing to pay a premium for the posh perks.

First-class transatlantic fares averaged about $2,900 one-way between January and August, not including taxes and fees, according to data from the aviation analytics company Cirium. But that can be a lot higher on more luxury-focused airlines.

Tiffany Funk, an analyst from the travel website Point.me, told Business Insider that a drive behind Singapore's new first-class is partly from ultra-wealthy people who want to fly in style but can't reach certain destinations with a private jet.

"Singapore adding first-class speaks to its demographics," she said. "One of the Google co-founders who goes back and forth between the US and Singapore is someone who would book it, those are the people willing to pay $15,000-$20,000 for that really nice luxury experience."

Funk said airlines like British Airways, Singapore, Emirates, and Air France don't always fill first-class but have them for the "prestige."

Airlines, especially those with state investment, are willing to take the trade-off for the sake of boosting their reputation or providing the needed luxuries for their local elites.

"Air France is committed to