That extra legroom you’re craving? Well, it might not be as real as you think. Just take a look at how airlines are prioritizing premium options. US airlines are seizing the opportunity to cater to leisure travelers’ desire for comfort post-pandemic by offering a wider range of premium options with bigger perks and more spacious seats. To meet this demand, United Airlines has nearly doubled its premium seating, while American Airlines is installing 30% more premium seats for longer flights. And the results speak volumes:
- Delta Air Lines first-quarter ticket revenue from premium travel has soared 10% year-over-year, compared to just 4% for economy fares.
- Alaska Air reports that a quarter of its seats are now premium, generating 32% of total revenue, with premium class revenue leaping by 10% in 2023.
No longer a one-class affair: Interestingly, budget airlines, who were early adopters of the “want more, pay more” strategy now resemble regular airlines more closely. Frontier revamped its offerings in May, moving from a single base fare (with add-ons) to a basic, economy, premium, and business model. Meanwhile, Southwest — long-resistant to dividing its seating — has hiked prices for early boarding and is considering seat assignments (WSJ). These changes will likely drive travel prices even higher as travel demand remains strong.
