Airlines are making a lot of money on premium economy

Travellers probably won’t be rushing to praise the airlines for it, but industry investors should find a lot to love in an innovation that offers just a smidgen more wiggle room for twice the money. As budget coach seats become more cramped, and business class gets more luxurious and pricey, demand has swelled for an in-between option that will give flyers a little more comfort without breaking the bank on long overseas flights. That’s how the “premium- economy” seats offered in a growing percentage of international jet fleets have become one of the most lucrative innovations in modern flying. Travellers pay prices that are broadly double -- and sometimes triple -- economy fares. And airlines incur only modestly higher costs without siphoning affluent travellers from their posher cabins. <br/>