Trend: The decision is part of a larger industry trend to give more space and better service to high-paying passengers who account for a disproportionate share of airline revenue.
“It helps our customers and it helps our bottom line,” he said.
Delta executives say they have increased premium seating from 9 percent to nearly 30 percent since 2011, and they’re selling more than 60 percent of those seats, up from 13 percent – not just giving them away in the form of upgrades. They say more corporate accounts are letting employees buy up to premium travel.
American has added “premium economy” seats – often double the price of regular economy but less than business class – on many planes used for international flights.
Retrofits: United will retrofit 21 of its Boeing 767-300ER jets starting in the next several weeks. It will reduce seats from 214 to 167 by shrinking the economy section while going from 30 to 46 business-class seats and adding 22 “premium plus” seats. The planes will fly first between United’s hub in Newark, New Jersey, and London.
Small, 50-seat planes are notoriously cramped and unpopular with many travelers. Nocella said United’s new small planes – 18 feet (6 meters) longer than the comparable plane it uses now – will have 10 business-class seats, 20 “economy plus” seats and only 20 regular economy seats.
But business travel is contingent on a strong economy, and fortunes could change should there be a recession.