Merchandising For Airline Profitability

Twenty years ago, when you boarded a long-haul flight, there were 20 or 30 people in the front that were going to be very comfortable and 250 people in the back who were guaranteed some level of discomfort ranging from bearable to abject misery. And airlines didn't make much money in the process. Most of the premium seats were loss-leaders for the airlines, with approximately 15% of the seat occupants actually paying full fares. Now, most airlines are seeing substantially more passengers opt to pay for business class seats, and that trend isn't limited to ultra-premium travel options, and profitability among the early adopters of this strategy has grown tremendously since the pandemic.