As travel’s rebound continues, a trend is emerging on airlines worldwide : Passengers can’t get enough of premium economy seats.Several carriers are reporting that even though business travelers haven’t returned to the skies, bookings in their premium economy cabins are higher than they were pre-pandemic.
“Demand for premium products is actually exceeding our coach products with the business traveler out,” Glen Haustein, president of Delta, said on the carrier’s recent earnings call .In fact, paid load factors, or how many passengers flew in available seats, in Delta’s Comfort+ premium economy cabin exceeded 2019 levels.“So I think the big epiphany for us was there’s a much broader demand for this than just business travelers.”
Other airlines are seeing higher demand as well.“Paid load factors for our Economy Plus increased by 10 points relative to 2019 this summer,” said Andrew Nocella, United’s chief commercial officer, during the Chicago-based airline’s third quarter earnings call .
For some carriers, such as subsidiary airlines at Lufthansa Airline Group, the cabin class has been so successful they’re considering new premium economy seats to replace business class altogether, according to a recent Bloomberg report .
It’s not hard to see the allure of premium economy.Upgrading from coach to the more luxe cabin means perks like roomier seats and leg rests, better food, fancier cocktails, and benefits like priority check-in and designer amenity kits.
Today many passengers are looking for an affordable upgrade , which used to be offered by business class.
But now, the perks in that cabin are out of reach for average passengers, especially on the longest routes.
“Where once the extra fare for business class would buy a seat with a deep recline or angled sleeping surface, nowadays long-haul business class means a dedicated cabin with spacious fully flat beds,” says Adam Gavine, editor of industry magazine Aircraft Interiors International.He also notes that there are numerous other opulent amenities that come with the high price point.
Compared with regular economy, “a real comfort gulf has opened between the two classes,” he says.“Premium economy bridges the gap in terms of experience and fare.”
The uptick in demand might also partially be attributed to fliers wanting more elbow room during the pandemic.“It is plausible that more travelers are willing to pay a little premium on long-haul not only for extra comfort, but also for extra personal space and social distance,” says Lukas Kaestner, president of the Crystal Cabin Award Association, which recognizes the most innovative aircraft interiors each year.
Another effect of the pandemic? Prices are currently low for the mid-tier seats, making them more accessible to a wider swath of fliers.In fact, fares for premium economy have never been cheaper, according to a study by Expedia .“In 2021, premium economy average ticket prices cost almost 290 percent more than economy tickets, whereas in 2020 they were 365 percent more expensive,” Expedia’s data says.
“In 2019 average prices for a premium economy ticket were a whopping 430 percent more expensive than economy.”
The cabin class, which began in the early 1990s on Taiwan -based carrier Eva Air, was already on the upswing before the pandemic.
That’s in large part because the seats are so profitable for airlines, “potentially even the most profitable part of a commercial plane, per square foot,” Gavine says.According to the Bloomberg report, Lufthansa’s premium economy seats have been about 40 percent more profitable per square foot than those in business class..