Lufthansa, American among airlines investing billions in lucrative premium seats

They say the best time to invest is at the bottom of the cycle. Well, airlines may have missed the bottom, but with balance sheets looking solid again they are moving quickly to update their products as travelers eagerly return to the skies. Lufthansa unveiled Friday a new suite of premium seat offerings, labeled “Allegris,” as part of a E2.5b investment in onboard products through 2025. Allegris includes new first class and business class suites; new premium economy seats; and upgraded economy seats. The product will be introduced next year on Lufthansa’s new Airbus A350s and Boeing 787s, and be installed on more than 100 other aircraft, including new Boeing 777-9s as well as Boeing 747-8s already in its fleet. Airbus A380s that Lufthansa is temporarily reactivating to meet demand will not receive the new seats. And in September, American Airlines unveiled new business class suites, and premium economy seats for its long-haul fleet. The products will be introduced in 2024 on new Airbus A321XLR and 787-9 aircraft, and later installed on 777s and 787s in the carrier’s fleet. The moves by Lufthansa and American — just two of many airlines, including Air France, Emirates, Finnair, and KLM — come amid a shift in leisure travel patterns towards more premium products. Numerous carriers cited premium leisure as a growing travel category during the pandemic, and have invested in capturing more of these travelers. Delta Air Lines, for example, accelerated the installation of premium economy seats and business class suites on its wide-body fleet during the Covid crisis in response to this shift. “The trend towards higher priced booking classes continues unchanged, with premium leisure demand, especially originating in the US, playing in more and more important role in this regard,” Lufthansa Group CEO Carsten Spohr said of what his airline was seeing in August. That strong premium demand was, in part, driving the group’s decision to invest in an updated onboard experience, he added.<br/>