London Daily

Focus on the big picture.
Monday, Jun 29, 2026

Do Airlines Make Money From First Class?

Around the world, airlines are shrinking or phasing out first-class cabins entirely. Instead, they are investing heavily in pleasing a larger group of well-heeled travelers than the rare few who would shell out more than $25,000 for over-the-top luxury.

Airlines, including Delta and United, are rolling out business-class cabins with pods and suites reminiscent of the top-tier of commercial air travel, all in denser cabins, aimed at those flying for work. Rival Qatar Airways this year unveiled a business-class cabin that features side-by-seats that can be converted into a double bed.

Unlike the rare few who shell out for the five-figure fare for a seat in an international first class, a business traveler is a repeat customer. Airlines are betting that these travelers (or more likely, their employers) are willing to splurge on a seat that provides ample workspace and a lie-flat bed for a good night’s sleep, and that it will boost their bottom lines. Elsewhere, these carriers are grappling with flyers constantly on the lookout for the latest rock-bottom fare.

Airlines are finding that they don’t need first class and want to fill their planes with as many paying passengers as possible. Emirates, which offers a first-class product with a shower, said it will fly planes between Dubai and London this December with business class and economy only, on some flights, due to high demand.

Utility not luxury


“The majority of the high-value passengers prefer to be left alone than lavished upon,” said Bruce Spear, a partner and a travel and transportation analyst at consulting firm Oliver Wyman. “It’s utility that carries the day, not luxury.”

Only 5.3 percent of travelers in the first seven months of 2017 flew in a premium-class cabin, which includes business class, but their contribution of airline revenue was 26 percent in that period, according to the International Air Transport Association, a trade group representing the world’s biggest airlines.

But some airlines are clinging to first-class cabins, and making them more opulent than ever.

Singapore Airlines, whose luxurious first-class service has long been part of its marketing, this week unveiled its new flagship product: large suites that look more like flying hotel rooms than airplane seats. But these suites, which feature fold-out beds and swivel seats, are fewer now —the revamped cabin reduced the number of suites on board the A380, the world’s largest airplane from 12 to six.

It pits the carrier against Persian Gulf airlines, like Etihad, which offers a three-room suite it calls “The Residence.”

Such a first-class product “creates a brand halo” for the airline.

But as lie-flat beds and pods in business class become the norm, carriers are looking at other ways to stand out in the premium cabin world, adding fancy bedding, food and amenities kits that include pajamas.

First-class freebies are fading


Airlines also want passengers to pay for these seats, and have scaled back on free upgrades and instead sell the bump to the better cabin, or sell the tickets outright.

When asked about why it is so difficult to get upgraded, United CEO Oscar Munoz told CNBC last month that passengers are paying for seats and “that’s a good thing for our business.”

A decade ago Delta would sell only about 15 percent of its first-class cabins and now between 50 and 60 percent is sold, Delta’s CEO, Ed Bastian, told reporters last month. He recently said it was too early to determine the percentage of business-class seats that are sold, because its revamped Delta One cabins are brand new.

“Everybody loves a free something,” Bastian said at a conference a month earlier. “Any business where you give the majority of your best product away, it doesn’t work.”

Delta Air Lines, United Airlines and American Airlines make a lot of their money at the front of the plane. A strong economy and industry consolidation has allowed the airlines, in recent years, to invest in more fuel efficient planes with better cabins focusing on premium classes.

One focus has been rethinking business class. First class internationally and on some key domestic routes has become a hybrid of first and business class.

As of November 2019, if you wanted to book a first class round trip flight on Emirates from JFK to Dubai at the last minute it could cost you over $23,000.

Flying from New York to Mumbai? Etihad Airways offers a three-room luxury suite called The Residence which features a private bathroom, a private living room and a personal butler. Flying round trip on Etihad for that flight could be over $36,000.

And, for about $3,000, American Airlines Flagship First fliers can go from New York to Los Angeles with access to an exclusive check-in area and premium wines in the flagship lounge.

While the airlines make a significant amount of money packing people into coach like cattle, premium cabins like business and first class are still a major source of income for U.S carriers.

Newsletter

Related Articles

0:00
0:00
Close
UK Launches New Measures to Improve Safety Standards in Night-Time Venues
UK Tightens Import Rules for Low-Value Parcels to Support Domestic Retailers
UK Launches £85 Million Obesity Care Programme Targeting Early Intervention Projects
UK Commits Up to $26 Million to Ebola Response in Democratic Republic of Congo
Security Industry Authority Flags Safety Failures in Night-Time Economy Inspections
Cambridge South Railway Station Opens After £250 Million Investment
UK Moves to Close Import Duty Loophole for Small Parcels by 2028
UK Invests £85 Million in Projects to Transform Obesity Care
Berkeley Group Warns London Housebuilding Falling Far Short of Demand
UK Council Tax Arrears Rise to £9.3 Billion Amid Ongoing Household Financial Strain
Markets Watch Political Transition as Andy Burnham Emerges as Labour Leadership Frontrunner
Extreme Heat Raises Long-Term Risks for UK Inflation and Productivity, Analysts Warn
UK Health Alerts Extended as Record June Heatwave Grips England
UK Parliament Faces High-Stakes Week of Spending, Security and Industrial Legislation
UK Repeals Vagrancy Act Ending Criminalisation of Rough Sleeping in England and Wales
GB News Pundit Charged With Fraud Over Alleged Conduct as Former Labour Adviser
Reform UK Gains Parliamentary Visibility in First Senedd Opposition Appearance
Metropolitan Police Arrest Man on Suspicion of Attempted Murder After London Car Incident
Ocado Chief Executive Tim Steiner Faces Scrutiny Over £100 Million Remuneration Package
British Chambers of Commerce Downgrades UK Growth Outlook to 0.9 Percent for 2026
Nottingham University Hospitals Maternity Failings Trigger Renewed Calls for Public Inquiry
Severe Heatwave Disrupts UK Transport Networks and Strains Public Services Across England
Labour Leadership Transition Raises Prospect of Andy Burnham Becoming UK Prime Minister
UK Government Confirms Further Medicine Price Concessions for Community Pharmacies in June
British Chambers of Commerce Calls for Public Procurement Reform to Boost Regional Growth
Thousands Mark Armed Forces Day Across the United Kingdom With National Parades and Flypasts
Man Arrested in Ealing on Suspicion of Attempted Murder After Vehicle Ramming Incident Injures Five
Cambridge South Station Opens With £250 Million Investment to Strengthen Life Sciences Corridor
UK Heat-Health Alerts Extended Across England as High Temperatures Persist
Thames Water and Energy Operators Warn of Peak Demand Risks During UK Heatwave
Government Conference Highlights Push for Evidence-Led Policy Across UK Public Sector
Insolvency Service Reports Improved Confidence in UK Insolvency System
Security Industry Authority Finds Widespread Safety Failures in UK Night-Time Economy
Nigel Farage Expands Anti-WHO Campaign Into United States With New Lobbying Structure
Home Secretary Seema Mahmood Unveils New Safe Routes Plan for Asylum Seekers
UK Government Warns of Peak Electricity and Water Pressure Amid Ongoing Heatwave
New Nuclear Plant in Wales Named Gwyndod Power Station as Energy Strategy Advances
UK Announces First Major Hydropower Projects in Four Decades to Expand Renewable Capacity
Thirteen Men Charged in Major UK Sexual Abuse Case as Investigation Continues
UK Launches Cross-Sector Climate Security Taskforce Linking Environment and National Security
UN Secretary-General António Guterres Calls for Urgent Global Methane Emissions Cuts in London
World Bank Approves $1 Billion UK-Backed Financing Package for Ukraine Recovery
UK Pledges Emergency Aid and Rescue Team Deployment to Earthquake-Hit Venezuela
Bank of England Holds Interest Rates at 3.75 Percent for Fourth Straight Meeting
Record-Breaking Heatwave Puts Strain on UK Health Services and Energy Networks
London Ambulance Service Sees Record Emergency Demand as Heatwave Intensifies
British Chambers of Commerce Warns of Prolonged Weak Investment Climate Through 2027
Bank of England Holds Interest Rates as Inflation Risks Persist
UK Construction Sector Faces One Percent Contraction Amid Cost and Investment Pressures
Former DUP Leader Sir Jeffrey Donaldson Convicted of Sexual Offences
×