The biggest U.S. airlines are redesigning their cabins and airports around premium passengers, a strategy that took hold after COVID-19 showed leisure travelers would pay more for comfort. Delta Air Lines CEO Ed Bastian put it plainly: "We can't win by trying to provide the cheapest. We have to be able to win by providing the best."
Delta, American Airlines and United Airlines are reconfiguring aircraft and building high-end lounges to court big spenders. Analysts say premium cabins now generate a disproportionate share of revenue, and McKinsey & Company found business-class tickets on transatlantic routes can bring in nearly as much as the larger economy cabin. Delta's new first-class lounges offer open kitchens and soundproof pods; American's newest Boeing 787-9 Dreamliners have business-class compartments with sliding doors and lie-flat seats; United's cubicles add 27-inch screens and caviar. United CEO Scott Kirby countered that "we're investing nose to tail for all customers."
The trend is set to continue: Delta's Airbus A350-1000s arriving in 2027 will devote nearly half the cabin to premium seating, and American plans a 50% premium expansion by decade's end. Meanwhile, travel advisor Mary Auteri says economy clients face "experiencing sticker shock" as jet fuel costs push fares up, with baggage and seat fees weighing heaviest on budget travelers.