- US airlines ditched first class for upgraded business cabins to optimize space and revenue.
- Some global carriers are adopting a different strategy as the demand for more luxury on board grows.
- Ultra-wealthy travelers will book first class on routes private jets can’t reach.
Delta Air Lines and United Airlines years ago eliminated international first class on their planes and American Airlines is following suit.
They believe that business class is more advantageous for long-haul flights. It can hold more seats and is more marketable to more people than an expensive first class ticket.
But many global carriers in Europe, Asia and the Middle East are taking the opposite approach, chasing dollar signs with new premium cabins amid a post-pandemic industry shake-up. the growing demand for luxury at the front of the plane.
That includes multimillion-dollar remodeling plans in an effort to attract more customers, keep up with competition, and boost revenue and reputation. While these carriers still have business class, true first class remains profitable despite taking up the least amount of cabin real estate.
Qatar Airways CEO Badr Mohammed Al Meer said CNBC in March that the airline’s first class is here to stay. It was a U-turn from its predecessor, who said in 2023 that first class was not needed with the famous carrier Q-Suite Business Class.
Five-star Singapore Airlines is also planning a new first class has started as part of an over $800 million cabin overhaul project. Air France, Swiss International Air Lines and Lufthansa are also in the mix, among others.
Mighty Travels Premium Survey Posted in October, showed that the resurgence of first class is largely corporate travelers from wealthy Fortune 500 companies.
The study, which analyzed airline revenue data, noted a surge in international bookings by affluent leisure travelers willing to pay a premium for luxury perks.
Transatlantic first-class tickets averaged about $2,900 one-way between January and August, excluding taxes and fees, according to data from aviation analyst Cirium. But this can be much higher on more luxurious airlines.
Tiffany Funk, travel website analyst Point.metold Business Insider that the drive behind Singapore’s new first class is partly from ultra-wealthy people who want to fly in style but can’t afford certain destinations by private jet.
“The addition of first class in Singapore speaks to its demographics,” she said. “One of the co-founders of Google who travels back and forth between the US and Singapore is someone who would book it, those are the people willing to pay $15,000-$20,000 for this really nice luxury experience.”
Some airlines add first class to increase their prestige
Funk said airlines such as British Airways, Singapore, Emirates and Air France don’t always fill first class, but have it for “prestige”.
Airlines, especially those with state investment, are willing to compromise for the sake of enhancing their reputation or providing necessary luxuries for the local elite.
“Air France is committed to having this super premium first class product because it’s Air France,” Funk said. “It doesn’t have to make economic sense and it doesn’t have to be just four seats to fill on the plane.”
She pointed to other examples like Emirates being able to attract more customers in all cabins simply because they are affiliated with there are showers in first class — even if people aren’t in a seat with access to that shower.
Then there’s British Airways, which according to Funk carries the Prime Minister and the Royal Family and has to partially maintain first class for that influence.
“You’re not going to have William and Kate fly business class with 85 other people,” she said.
9 airlines are planning a new first class cabin
With at least nine new international premium cabins coming to market over the next few years, customers with deep pockets there’s a lot to look forward to — especially since some of those luxury seats will touch down in the US.
Here are nine global airlines introducing a new premium cabin:
- Air India: New First Class Will to be retrofitted to existing Boeing 777-300ERs starting in 2025 as part of Air India’s $400 million rebranding.
- Air France: The airline’s new “La Premiere” first class is expected will be introduced by the end of 2024, although details remain limited.
- British Airways: The UK’s carrier is debutant new first class on its Airbus A380 and the future Boeing 777X. No official schedule has been announced.
- Cathay Pacific: The Hong Kong-based airline is presentation new first class on its future 777X aircraft, but delivery of these aircraft and their new cabin is not yet certain.
- Swiss International Air Lines: From 2025 the carrier will offer a new capsule-like first class on existing A330s, Boeing 777s and future A350s.
- Lufthansa: Germany’s national carrier is launches its new premium A350 Allegris on Saturday. The apartment is similar to the Swiss one.
- Qantas: From 2026 Australia’s national airline will launch a new first class on A350s as part of “Project Sunrise,” which will operate the new longest flights in the world between Australia, New York and London.
- Qatar: The Doha-based airline has released few details about its new first class, but the cabin will be on future 777X aircraft.
- Singapore: Singapore is the latest airline to unveil a new first class that will debut at seven ultra long range A350-900ULRs in the first quarter of 2027.