Why Airlines Are Investing Big in Premium Seats

24.11.2023 - 14:07 / afar.com / Delta I (I) / Edward Russell / Airlines

Over the past decade, airlines have introduced seats (and suites) that deliver the comfort of a five-star hotel, thanks to features such as sliding privacy doors, restaurant-quality dining, and plush bedding that rivals what one would get on the ground.

The pace of innovation doesn’t seem to be slowing down anytime soon: There’s the new premium economy cabin from Emirates, a first for a Middle Eastern carrier; United recently unveiled its biggest overhaul to Polaris business class since launching the seats in 2016; and Delta is in the midst of transforming its Delta One ground experience and opening new lounges. That’s just the tip of the iceberg.

Premium leisure travelers who bought a seat up front over the past several years—some, for the very first time—are eager for more swanky in-flight experiences. After all, once you fly at the pointy end of the plane, it’s hard to go back to the back. However, there’s one caveat. The empty cabins, and more importantly, the bargain-basement prices for premium seats during the pandemic are now a relic of the past. Demand for travel has returned with a vengeance and, with it, the high prices of first- and business-class tickets.

“With generally lower price points to access premium seats during the pandemic, a lot of people got a taste of what these products are like and they want more,” Edward Russell, an aviation analyst and reporter with Skift, tells AFAR. In fact, even as airfare spiked this past summer, planes continued to leave their gates filled to the brim—as airlines made record profits.

Here’s the thing: As the last couple of years have shown, leisure travelers are willing to pay a premium for premium, more so than airlines even initially believed. That means carriers are not only rethinking their strategy for first,class, business, and premium economy but many are also adding more seats and lavish perks as quickly as possible.

The short answer to why are airlines investing big in aspirational onboard experiences? It makes them a lot of money, and passengers are paying up.

Emirates’ premium economy includes leather seats that recline 8 inches, calf rests, and a welcome drink once onboard.

Courtesy of Emirates

While it might not be the sexiest product, the premium economy cabin—a Goldilocks middle ground between business class and economy—is a huge part of that strategy shift.

American Airlines was the first U.S. carrier to debut long-haul premium economy in 2016, and it’s a segment that is surging across the industry. Next year, American will introduce a new, second-generation premium economy seat with more privacy and double the in-seat storage space.

Delta Air Lines, for its part, said in its most recent earnings call that premium economy (which the