American Airlines puts premium products near half ticket revenue

American Airlines said premium products generate roughly half of ticket revenue from about 30% of seats, according to an AFP report carried by Daily Sabah on Nov. 8.

The figures show why U.S. carriers are expanding premium cabins: American reported premium revenue rose 18.5% year over year in the most recent quarter, four percentage points faster than main-cabin revenue, AFP reported.

Airlines are adding higher-priced seats, upgraded food, exclusive lounges and paid comfort options as they try to lift revenue per passenger. AFP reported that carriers also face significantly higher jet-fuel costs tied to the Iran war.

A business-class seat can take as much cabin floor space as four basic seats but sell for five or six times as much, Volodymyr Bilotka, a Purdue University professor specializing in aviation economics, told AFP.

"Airlines have traditionally been investing quite a lot into the premium offerings because the profit margins are significantly higher," Bilotka said.

The push extends beyond first and business class. Passengers may pay as much as $200 for more legroom or a seat near the front of the aircraft, AFP reported. United Airlines said in July it would introduce an Economy Plus option allowing customers to avoid having a passenger in the middle seat on some flights at the end of 2026.

JetBlue said in September it would launch BlueFirst, a domestic first-class service. "Customers are increasingly looking for more premium experiences," JetBlue CEO Joanna Geraghty said.

Premium seating has grown faster than standard seating since the pandemic period. Skift, the travel news site, said premium seats on U.S. flights have increased 33% since 2020, more than twice the growth rate of mainline seats.

United told AFP that its premium-seat capacity more than doubled between 2015 and 2026. Delta has invested in DeltaOne, including upgraded food, wine and entertainment screens, and plans the service for new Airbus A350 aircraft with about 150 premium seats and 161 economy seats.

"Twenty years ago, 90% of the seats were main cabin," said Ekrem Dimbiloğlu, Delta's managing director for onboard strategy and experience. He said premium seats could reach as much as 70% on some Delta flights.

Across the 42 carriers in the three major airline alliances and Middle Eastern airlines, premium seats represent 19% of total volume, up from 17.1% in 2019, according to consultancy Cirium. British Airways said in October that the upper deck of its two-tier A380 would be made entirely of premium seats.

The strategy carries limits. AFP reported that no major carrier has launched service with no economy seats, and a greater focus on passengers who can pay for amenities could create room for discount rivals, even as higher fuel costs pressure all airlines.

United Airlines plans to begin offering its Economy Plus option on some flights at the end of 2026, letting customers avoid having a passenger in the middle seat.

Source: AFP report carried by Daily Sabah, Nov. 8, 2026