Flying first class offers a vastly different travel experience, often associated with luxury. However, in recent years, first class has been losing popularity to a rising class of seating positioned below it. While some airlines are hesitating to eliminate first class altogether, others are committed to phasing it out.
Oman Air is one airline making the transition away from first class, and its reasons for doing so are quite compelling.
Airline seating classes evolve over time. In the early days of aviation, all classes were essentially the same, with equally uncomfortable seats and a less-than-pleasant experience. Gradually, airlines began to improve the passenger experience. In 1955, Trans World Airlines became the first airline to introduce a two-class system: first class and economy.
Shortly afterward, in 1970, executive seats were introduced, offering more space and better services than economy class but still positioned just behind first class. This model quickly attracted the attention of other airlines, allowing them to charge passengers an additional 25% to 50%. The initial concept of business seats has evolved significantly and now resembles today’s premium economy class. As officials continue to enhance business seating, it’s begun to outperform first class.
In the central seats, there are cabins with two seats, featuring rigid curtains for privacy.
Trending. In 2016, Delta Air Lines introduced business cabins. While these weren’t classified as first class, they offered a price point that attracted customers looking for a more comfortable experience on long trips. The features of these seats quickly caught the attention of premium travelers. As a result, Delta reported a 17% growth in premium class revenue, which confirmed the effectiveness of this strategy.
Increasingly, airlines are reallocating space from first class and economy sections to enhance business class and premium economy offerings. This trend is driven by the relationship between the aircraft’s required space and the seats’ economic performance.
A video from Aviatrix illustrates this concept:
Data. Business travelers make up 12% of passengers on an aircraft but account for 75% of the revenue. For example, on a British Airways Boeing 777 flying from London in the United Kingdom to Washington, D.C., the seating and revenue situation is as follows:
- Economy class: 122 seats at $1,050 each = $128,100 per flight.
- Premium economy class: 40 seats at $3,600 each = $144,000 per flight.
- Business class: 48 seats at $5,500 each = $264,000 per flight.
- First class: 14 seats at $10,500 each = $147,000 per flight.
While not all flights are priced as high, airlines aim to have fewer passengers paying more, thereby increasing profits. However, maintaining first class conflicts with this goal. The 14 seats occupy considerable space while yielding lower profits compared to business class.
Eliminating first class. Airlines like American Airlines, Air New Zealand, and Turkish Airlines have begun phasing out first class in favor of enhanced business class seats. Oman Air presents an interesting case with its Business Studio cabins. These seats will currently only be available on the London-Bangkok route. They’re priced lower than previous first class seats but slightly higher than standard business class.
Business Studio cabins. Oman Air CEO Con Korfiatis told Fortune that the demand for first class seats has declined. In response, the airline has introduced a “premium business class.” The new Business Studio will feature 82-inch seat spacing, walls to ensure privacy, a 23-inch personal screen, free Wi-Fi connectivity, and à la carte food options. This setup provides the privacy of first class, along with amenities designed for both working and relaxing during a business flight.
As airlines continue to innovate… We’re witnessing the emergence of business classes that could rival first class offerings from other airlines. For instance, Qatar Airways already provides a business class experience surpassing some first classes. To enhance this experience further, the airline now includes caviar and champagne priced at $390 a bottle in its business class, contributing significantly to the overall flight experience.
Airlines that are eliminating first class are converting that space into a “business plus,” which features more spacious seats, cabins designed for two passengers, and enhanced amenities that exceed standard business class offerings yet remain below first class pricing.
The challenge will be how airlines implement this strategy in other sections of the aircraft, as naming conventions may become exhausted. If premium economy plus seats or similar concepts don’t already exist, we may soon see airlines introduce them.
Image | Lukas Souza | Oman Air
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