Airlines are betting that more passengers will pay for an upgrade to their flight experience, with some carriers fitting roomier seats, bringing in Michelin-starred chefs to design onboard menus and also investing in elite airport lounges.
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Some airlines envisage up to 70% of passengers paying for enhanced options, if not first-or business class. That shift could mean fewer standard economy seats on many flights.
The war in Iran has pushed up jet fuel costs, but airlines see premium travel as a way to boost profits over the long term.
Business class seats can each take up floor space equivalent to four basic-level seats, but can be priced five or six times higher, said Volodymyr Bilotka, a professor at Purdue University and a specialist in aviation economics.
"Airlines have traditionally been investing quite a lot into the premium offerings because the profit margins are significantly higher," Bilotka told the AFP news agency.
In the most recent quarter, American Airlines said premium revenue increased 18.5% year-over-year, four points better than the main cabin. American executives said the boost has been a bright spot in a travel market complicated by t...