VIVAERO Airlines bet that more premium offerings will boost profits Airlines are installing deluxe seats, enlisting Michelin-star chefs for luxury menu offerings and designing elite airport lounges as the industry bets its future on growing demand for premium travel. The strategy is expected to accelerate the shrinking share of coach class on many flights, with airlines envisioning as much as 70% of passengers paying for enhanced options, if not first class or business class. Airlines face significantly higher jet fuel costs due to the Iran war, but view such upselling as a profitable long-term bet. Business class seats can each take up floor space equivalent to four basic-level seats, but can be priced five or six times higher, said Volodymyr Bilotka , a professor at Purdue University and a specialist in aviation economics. “Airlines have traditionally been investing quite a lot into the premium offerings because the profit margins are significantly higher,” Bilotka said. In ...
