US airlines jump on the premium-seat bandwagon

Demand for high-end travel is booming, and U.S. carriers are in a rush to seize on it. Airlines are adding more comfortable and bigger seats on their planes to attract customers willing to pay more for a better travel experience. Some airlines known for low-fare models like Southwest, Spirit and Frontier are even shifting away from their traditional business models to woo them. Airline executives say consumers have cut their spending on goods in favor of experiences, with travel their topmost priority after the COVID-19 pandemic. U.S. carriers are betting that the travel boom is a multi-year phenomenon and are vying to grab a bigger slice of the high-end market. The effort is part of a broader industry strategy to find high-margin revenue streams to offset rising labor and operating costs. A survey in May by consulting firm Deloitte found more travelers were ready to pay for a more comfortable flying experience than a year ago. "That segment of passengers is as strong as the industry has ever seen it," Alaska Airline's CFO Shane Tackett said in an interview. Stronger demand for premium cabins helped Alaska post the highest adjusted pre-tax margin among major carriers in the second quarter. It also boosted earnings at Delta and United Airlines. Alaska has retrofitted its entire regional fleet this year to add 400,000 premium seats. It now has plans to add 1.3m premium seats a year to its mainline fleet.<br/>