Airlines continue to expand premium options

A growing number of airlines are embracing a simple truth about flying: legroom sells.

Across the industry, airlines are reworking their planes to fit more premium seats, and cutting back on standard economy in the process. The goal is simple: make more money per flight by catering to travelers willing to pay up for comfort.

By the numbers: Premium economy seats can sell for double the price of a regular economy ticket while taking up only slightly more space, per the Global Tourism Forum. And that math is hard for airlines to ignore.

Since January 2020, the number of business and first-class seats on domestic flights has risen by 27%, per Visual Approach Analytics. Meanwhile, economy seats have grown just 10%.

The trend exists across the industry

Delta says households earning over $100,000 now make up ~75% of all airline leisure spending. In response, the company is doubling down on that group by adding more first-class seats and expanding its Delta One suites, per CEO Ed Bastian.

• United is taking a similar approach with its new “elevated” Dreamliner, where just 40% of seats are standard economy (down from 58% currently). United also recently announced a new “Relax Row” allowing passengers to pay extra to transform a row of economy seats into a makeshift couch.
• American Airlines has also boosted its premium seat count by more than a third over the past decade.

Bottom line: Analysts say adding more premium economy options gives airlines a revenue system that can adapt to different consumer behaviors. Basic economy passengers can upgrade when spending is strong, while business-class travelers can trade down to premium economy when purse strings tighten.