Is It Time For A First Class-Only Airline?

14.08.2023 - 18:13 / forbes.com

The major U.S. airlines offer a range of service levels in the hope of appealing to a range of customers. Domestic first class and international business class attract the least price sensitive customers with capacious seats, ample storage space, and premium amenities. From there, things go downhill - from “premium economy” to the dreaded “basic economy,” seats shrink and amenities disappear.

This pricing model seems to serve the airlines well, although their price segmentation approach has resulted in a basic product that is unarguably worse than the basic product of a few decades ago. Seats and lavatories are smaller than ever, and fees are imposed for amenities that used to be free.

Airlines have realized the degradation of customer experience for economy passengers can’t continue forever. While no major airline has begun ripping out the most-cramped seats or comically small lavatories, they have begun to invest in features that improve the in-flight experience, even for the rear cabin.

Flyers are increasingly willing to pay more for a better experience, and the major airlines are expanding their premium seat options. Delta has set a goal of 37% of its revenue for premium seats, nearly as much as the 40% they expect from economy seats. That’s up from their estimated current year split of 35% for premium vs. 44% for economy. (The balance of Delta’s revenue comes from “loyalty and other.”)

The typical first class experience on a major U.S. airline must seem like unparalleled luxury to European travelers, where short-haul “business class” seats are the same spartan seats found in the rest of the plane. There might be a bit more leg room, and the middle seat is left empty.

But even the expansive leather seats, hot meals, and proper wines don’t deliver U.S. customers a true first-class experience. The first class passengers are seated first, but they must wait for 150+ more passengers to file past. It typically takes 25 minutes to fully board an airplane the way most major airlines do it, and front cabin passengers have a literal front row seat for the entire process.

Front cabin passengers also share the often cramped, sometimes chaotic gate area with everyone else on the plane. For the major U.S. airlines, a first class domestic ticket doesn’t include lounge access.

Upon arrival, front cabin passengers have the advantage of a quick, unimpeded exit. If they checked a bag, though, they’ll simply be the first to begin waiting for luggage to be offloaded and delivered to the carousel - another crowded and chaotic experience.

I don’t deny that spending a few hours in a first class seat is far more desirable that the same experience in basic economy. Except for the in-cabin space and service, though, the