The Big Business of Airline Seats

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In recent years, airlines have seen a willingness from passengers to purchase more premium seats as they seek privacy, storage, productivity, and comfort, per CNBC.

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As a result, airlines are spending big upgrading airline seats:

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• Delta rolled out the airline’s newest First Class seat on select Boeing 737-800 airplanes in Jan. 2024 – the seats aim to give passengers more comfort, privacy, additional stowage space for personal items, and a sturdier tray table.
• United unveiled a new First Class seat on 200-narrow body planes for domestic flights in July 2023 – the seat’s upgrades included three kinds of wireless charging and winged headrests.
• JetBlue revamped its Mint cabin seats in Feb. 2021 – adding a sliding door to try to win over trans-Atlantic customers.

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Airline seats are a big business. Airline seats were a $2.6 billion market in 2022 and accounted for 46% of what airlines spent on the interiors of their planes, per AeroDynamic advisory.

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Airlines are selling these premium seats to drive revenue growth and profits. Premium airline seats are accounted for under ancillary revenue on the Income Statement and comprise the industry’s fastest-growing revenue segment. 

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What’s next?

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• Airlines will reduce the number of economy seats, which still make up ~80% of the cabin, in favor of more seats in First Class, Business Class, and Premium Economy.
• Airlines will experiment with various upgrades – bars, shower access, double-decker configurations, and more for longer international flights.