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Airlines are accelerating their bet on premium seats to increase profits and transform the flight experience while economy class loses ground globally.

Written by Jefferson Augusto
Published on 04/05/2026 at 18:01
Updated on 04/05/2026 at 18:02
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Expansion of mid-range and high-end cabins redefines aviation’s commercial strategies, boosts revenue per passenger, and changes consumption profile in global air transport

The information was released by “O Globo”, with complementary data from Iata (International Air Transport Association), and reveals a profound transformation in the global aviation sector. In recent years, especially in the post-pandemic period, airlines have strongly focused on expanding premium seats as a central strategy to increase revenue and cater to a new passenger profile.

Right from the start, this movement is no accident. On the contrary, it reflects a structural shift in how companies view the balance between passenger volume and profitability per flight. While economy class loses relative space, categories like premium economy, business, and first class gain prominence.

Premium economy becomes a protagonist and boosts airline profits

First, it’s important to understand the role of what’s called premium economy, which today occupies a strategic position within aircraft. This category functions as a middle ground between traditional economy class and more luxurious cabins, offering more comfort, benefits, and flexibility at an still affordable price.

According to Alessandro Oliveira, an ITA specialist, the price difference between premium economy and economy can vary from two to three times, potentially reaching up to eight times, depending on demand. This happens because the sector uses what is called yield management, a dynamic pricing system based on demand.

Furthermore, the greater the number of segments within the aircraft, the greater the commercial flexibility for airlines. This way, companies can cater to passengers with different income profiles, preferences, and expectations, maximizing financial return per seat.

At the same time, the recovery of air traffic after the pandemic, combined with limitations in fleet expansion — a result of the industry’s slowdown during Covid-19 — led to an average global occupancy of 84% by the end of 2025. Therefore, with fuller planes, the strategy shifted to increasing the value generated per passenger.

Accelerated growth of premium cabins surpasses economy class

Meanwhile, the data reinforces the strength of this trend. According to Simone Tcherniakovsky, Iata’s general director in Brazil, premium seat capacity grew 117% in 2025 compared to 2019, surpassing the growth of economy class, which advanced 106% in the same period.

Furthermore, Iata’s last quarter 2025 report indicates that Latin America and the Caribbean recorded a 5.5% expansion in total passenger traffic over 12 months, while the international segment grew by 6.6%. However, the highlight was the premium classes, which advanced an impressive 13.2%.

Another relevant data point reinforces this structural change: although premium classes represent only 3.6% of total passengers in 2025, they are responsible for about 15% of airline revenue, as their fares can be, on average, up to five times more expensive than those of economy class.

Consequently, the sector realized that it’s not just about increasing the number of passengers, but rather improving the quality of revenue per customer.

New investments, routes, and services drive sector transformation

Given this scenario, airlines worldwide are accelerating investments in new cabins, aircraft, and differentiated services. A clear example is Gol, which, after emerging from judicial reorganization, announced the arrival of five Airbus A330-900s, leased from Wamos.

These aircraft will allow the company to expand its international network, with routes to Lisbon, New York, Paris, and Orlando from Rio de Janeiro. Additionally, the company launched the Insignia business class, considered one of the pillars of its growth strategy.

For the passenger, the benefits include lie-flat seats, in-flight service curated by chef Felipe Bronze (two Michelin stars), priority check-in, and lounge access.

At the same time, Latam is also moving in this direction. The company has offered premium economy on domestic flights since 2020 and plans to expand this category to long-haul international flights starting in 2027. Additionally, with the arrival of more than ten A321XLR aircraft, the company will introduce a new premium business class with fully reclinable seats.

Meanwhile, other airlines are following suit. TAP will begin offering Economy Prime from June, with prices between 30% and 40% higher than economy class. Delta, on the other hand, is investing over US$ 1 billion in modernizing its premium cabins, including the new Delta One with private suites on A350-1000 aircraft starting in 2027.

Corporate travel and consumer profile drive premium demand

Another decisive factor for this transformation is the growth of corporate travel. This segment, traditionally associated with higher fares, returned to pre-pandemic levels as early as 2022, moving R$ 11.20 billion. In subsequent years, it continued to expand, reaching R$ 13.68 billion in 2025, according to Abracorp.

However, many companies have adopted more restrictive policies, reducing the use of business class. In this context, premium economy emerges as a balanced alternative, offering additional comfort without the high costs of business class.

Furthermore, the passenger profile has changed. Today, both corporate travelers and high-end tourists seek more comfortable experiences, with greater privacy, better service, and exclusive benefits.

Therefore, the so-called “premiumization” of aviation is not just a momentary trend, but a structural transformation that redefines the future of the sector.

If you could choose, would you pay more for a premium in-flight experience or prefer to save money and travel in economy class?

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Jefferson Augusto

I work for Click Petróleo e Gás, providing analyses and content related to Geopolitics, Curiosities, Industry, Technology, and Artificial Intelligence. Please send content suggestions to: jasgolfxp@gmail.com

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