WASHINGTON – AUGUST 16: A United Airlines aircraft passes by a Continental Airlines aircraft as it … [+] taxis to takeoff from the runway of Ronald Reagan National Airport August 16, 2006 in Washington, DC. (Photo by Alex Wong/Getty Images)
Aircraft cabin space is some of the most expensive real estate on the planet. Airlines have struggled over the decades to make that limited and highly-regulated square footage pay off. IATA’s latest estimated average airline profit per passenger is merely $2.25 in 2023. But the premium segment of the aircraft cabin is growing, helping to balance the equation.
United Airlines joins several airlines worldwide that have profited from a trend towards lusher, more comfortable, business class, and premium economy cabins. Passengers are the ultimate winners in this trend, as aircraft cabin designers have set new standards for comfort.
United Airlines Premium Cabins Perform Well
United Airlines’ Polaris contributed to the airline’s revenue growth as more passengers and airlines … [+] flock to premium cabins.
“Demand for premium products remains high, with great success in the premium economy cabin, where revenue has outpaced capacity growth since its introduction in 2019. In total, revenue from premium products was up 20% year-over-year in the quarter, accounting for more than half of all passenger revenue,” United Airlines reported in its third quarter 2023 financial results.
United’s Star Alliance partner Lufthansa also reported gains from premium offerings. According to the airline, the Premium Economy cabin is the most productive in revenue by square foot—6% higher than the Business class and 33% higher than the Economy class.
First Class Has Evolved And Been Rebranded As Premium Economy
SWISS Premium Economy.
The type of reclining seat featured in most of today’s Premium Economy class cabins would have qualified as First-class seats in the 90s. And that is part of what makes this particular cabin optimal. It offers affordable comfort to more passengers without sacrificing valuable aircraft square footage. For some business travelers, a premium economy booking looks better on travel expense reports than a business or first-class ticket. It is also an attractive cabin for leisure travelers flying long-haul flights who don’t want to overspend their travel budget on airfare.
In this sense, premium economy class is a ‘goldilocks’ class for airlines and passengers alike. Not too pricey to install, nor too costly to maintain, and not too exp
