The end of free first-class upgrades? More people are paying for premium seats than ever before
If you balk at the thought of spending hours in the air in a cramped economy-class seat, you're not alone. Passengers are now buying more first-business and premium-class economy seats than ever before.
What became a trend post-pandemic has now become a major money maker for commercial airlines, despite recent increases in airfare, according to both the latest airlines earnings statements and industry experts.
Delta Air Lines made the same amount of money in the first and second quarters of 2026 from premium seating as it did from economy sales, a significant shift from just a few years ago – when airlines routinely gave first- and business-class seats away in free upgrades to their most loyal customers – and a substantial increase from pre-pandemic premium seating earnings.
“The premium revenues that we are generating continue to grow from 10 years ago where we were. We’ve more than doubled. Those premium offerings [are] really important in times of volatility, that you have a product that you can price for, a product that's resilient through these tougher times,” Delta CEO Ed Bastian said at a JP Morgan conference in March.
When reporting their second-quarter earnings result on July 16, United Airlines also said that they are seeing faster growth and a solid uptick in premium travel sales. American Airlines reported a similar trend last week, saying their “premium traffic continues to outpace the rest of the business.”
One reason behind this growth, according to Brian Sumers, editor of the airline business newsletter The Airline Observer, is what he says is travelers' “near-insatiable appetite” for premium products since the pandemic, when the resulting decline in air travel led airlines to slash prices on premium seats to attract customers.
Once a passenger experiences air travel in a premium cabin, experts say, it’s much harder to go back to economy, especially on long-haul international flights where premium seats include lie-flat beds. More passengers than ever are now more likely to travel in first, business or premium economy class, or to pay more for seats with extra legroom.
Airlines have learned what customers are willing to spend on premium products and now price accordingly. In the early 2000s through the start of the pandemic, the cost of a domestic first-class seat often ran into the low thousands. Airlines now charge a much lower price, making it more affordable for economy passengers to upgrade to a better seat.
“Premium fares can be a lot cheaper than they once were, maybe only a couple hundred dollars more than coach on a domestic flight. Even at that price, they are profitable to airlines," Sumers told ABC News.
Additionally, "airlines have become more sophisticated with how they offer upgrades on their apps. Consumers can buy a coach fare and then, weeks or months later, they may see an offer on the app to upgrade for a reasonable price. If they bite, they're considered a premium passenger,” according to Sumers.
Airlines initially considered the increase in the number of passengers paying for premium seats a post-pandemic trend that would eventually decline, similar to the so-called "revenge travel" surge seen in the years following the pandemic, Sumers said. However, the shift has so far proven to be more enduring.
The change is also reflected in industry data. Overall revenue from non-economy passengers accounted for nearly half of all industry revenue in 2025, Darren Hulst, Boeing’s vice president of commercial marketing, said during the aircraft manufacturer's commercial market outlook call in June.
This sustained increase in demand has prompted airlines to expand their premium product offerings in recent years. Industry analyst Henry Harteveldt, president of the travel market research and advisory firm Atmosphere Research Group, told ABC News that the wide range of premium products has contributed to the continued growth.
“Instead of just economy and first or business class, airlines such as American, Delta and United offer extra-legroom economy and first class on their domestic single-aisle planes, and three premium seating options – extra-legroom economy, premium economy and business class – on their long-haul fleets,” Harteveldt said.
The shift prompted Southwest airlines to change its business model for the first time in 50 years, when the airline introduced assigned and premium seating options in 2025 to keep up with the industry and customer demand. CEO Bob Jordan also teased a forthcoming announcement about airport lounges during an earnings call last week.
Even low-cost carriers are investing in premium products as the demand continues to grow. Last year, Frontier Airlines introduced first-class seats and complimentary upgrades for its royalty members. On Monday, JetBlue announced BlueFirst, a new domestic first-class experience rolling out later this year. The airline said it will also allow travelers to compare the amenities in different fare classes before buying a ticket.
