Passengers deplane through the business class seating area on an American Airlines flight, London Heathrow Airport, Aug. 14, 2018.Jeff Greenberg | Universal Images Group | Getty Images
Cheap seats aren’t enough for airline passengers anymore. Since the pandemic, travelers have shown airlines that they’re willing to pay up to sit at the relatively spacious front of the cabin. That means that many of the seats are already full, so it’s harder for frequent flyers to score free upgrades to the front of the airplane.
The ranks of frequent flyers with elite status are swelling, making it even more competitive for those seats. Expect even more crowds during the year-end holiday period, which airlines predict will set another record. Even in the off-season in early 2025, executives have been forecasting strong demand.
U.S. airlines’ capacity in the first quarter will be up about 1% from a year earlier, according to aviation data firm Cirium. Additionally, the price difference between first class and coach varies based on distance, demand, time of year, and even time of day.
For instance, a round-trip ticket on United Airlines from its hub in Newark, New Jersey, to Los Angeles International Airport during the first week of February was $347 in standard economy and $1,791 in the carrier’s Polaris cabin, which features lie-flat seats, but not access to the international business-class lounge. American Airlines’ nonstop flight from New York to Paris during Easter week 2025 was $1,104 in coach and $3,038 in the airline’s Flagship Business class.
Airlines’ loyalty programs are a cash cow, and getting the balance right between perks such as free upgrades and bringing in cash is key. To achieve this, airlines have changed the requirements to earn status, rewarding spending and not just the distance flown.
Billions of dollars in revenue that keeps airlines afloat hangs in the balance. The trend is cutting across the industry, from Delta, the most profitable carrier, to discounters such as Frontier Airlines, which is adding roomier first-class seats to the front of its Airbus fleet in 2025.
Airlines are now racing to add first-class sections or bigger international business classes featuring bigger screens and closing doors to the flatbed seats. The demand for premium cabins has led to a shift in the way airlines operate, with more paid upgrades and fewer cheap seats being given away.