Over the past year, airlines have experienced a strong increase in demand for high-end travel. Bookings in premium cabins have exceeded growth in economy class, even though ticket prices are significantly higher. This trend is pushing airlines to rework aircraft layouts by adding more business, first and premium economy seats, while reducing economy capacity to suit a more affluent and experience-focused customer base.
Aircraft that were once dominated by economy seating are being reconfigured as traveller preferences continue to evolve. These changes, which began before the pandemic, have accelerated in the post-Covid environment. Airlines are increasingly targeting passengers who prioritise comfort, privacy and elevated amenities, even if it means paying up to 10 times the cost of an economy ticket. Industry data shows that premium bookings grew by 11.8% globally in 2024, while economy grew by 11.5%, reflecting a clear trend.
Among individual carriers, the premium shift is even more evident. At Flight Centre, international bookings for premium seats climbed 18% this year, compared to a 10% increase for economy. Steady spending from high-income travellers and corporate clients is driving investment in business and premium cabins across major airlines. Airlines such as Qantas, Air New Zealand and United Airlines are deploying aircraft with configurations that favour premium seats to attract this growing segment.
As part of this strategy, some airlines are removing thousands of economy seats to make room for premium options. Emirates is replacing over 10,000 standard seats with more than 8000 premium economy seats across 200 aircraft. Qantas is equipping its new A350-1000s with 98 premium seats and only 140 economy seats, while United Airlines is adopting similar layouts for its new Dreamliners. These figures reflect a clear belief that travellers now place a higher value on space and comfort when budgeting for flights.
This approach not only enhances airline profitability but also redefines air travel. On select long haul routes, such as Sydney to Los Angeles, business class round-trip fares exceed $13,000. Premium economy on the same route can cost $4,800, more than three times an economy fare. Despite the price jump, demand remains strong, indicating a continued shift towards more personalised, comfortable and connected flight options.
Although economy passengers may face fewer seats and greater competition, they are not being overlooked. Air New Zealand will introduce sleep pods, branded as Skynest, in the economy section of its new Dreamliners set to arrive in 2025. Emirates and Qatar Airways also plan to offer improved facilities in future economy cabins. These changes suggest a wider push across the aviation industry to enhance in-flight experience in all classes, even as premium cabins lead the charge.
