Lets be upfront
Investment continues in premium cabins, says Nick Easen, driven by higher demand, passenger expectations and capacity constraints
Premium cabin tickets will still be key components in corporate travel programmes in 2026, especially for long-haul or overnight flights. The duty of care and wellness factor helps fund their continued purchase. Spend at the front of the cabin is still strong despite economic jitters in the UK and beyond.
In fact, international premium travel globally, including business and first class, grew by 11.8% year-on year, according to the International Air Transport Association (IATA), exceeding growth in economy cabins. With Europe seeing the highest growth in passenger numbers, it’s also the largest market with over 39 million passengers.
“We’re not seeing downgrades; instead there’s a strong focus on making travel count for more, such as longer trips combining multiple purposes. We’ve seen some slowing sporadically, but this is more related to geopolitics rather than corporate policy decisions,” explains Claudia Jackson, Managing Director, UK & Ireland at BCD.

Post-Covid, airlines have been clawing back money. The lows in global oil prices, which translates into jet fuel, have been cushioning airlines, and will continue to do so in 2026. This is likely to dampen any future growth in ticket prices. Premium air seats are predicted to cost $3,900 on average next year, with a growth rate of less than 1%, according to the latest CWT GBTA Global Business Travel Forecast.
Now with balance sheets back in better health, buoyed by strong leisure, then business demand, carriers are investing again in products that grab market share. This includes highly competitive premium offerings, where up-to-date, state-of- the-art cabins aim to lure customers. In 2017, 42 carriers offered a premium economy cabin, but by 2025, that figure has doubled to 88, according to aviation analytics firm Cirium.
Delays in new aircraft deliveries from Boeing and Airbus mean that fleets aren’t expanding quickly enough. This has led to some carriers reconfiguring planes in order to generate higher yields per seat. This involves switching to more slots in premium economy. It’s why some airlines such as Emirates have been introducing premium economy for the first time on certain routes.

Upwardly mobile
“Airlines that had plans to up-gauge aircraft and expand premium seating are now facing constraints, and that scarcity is driving demand. At the same time, fixed costs such as labour continue to rise. In a low-margin industry, airlines are doubling down on higher-yield products like premium cabins to protect profitability,” says to Amy Rayca, Global Air Practice Line Lead at Amex GBT.
“Understanding these shifts, along with dynamic pricing and revenue management, are key to navigating fare trends.”
With only so much capacity at the front of the aircraft and with stiff competition from leisure, travel managers are advised to book early for 2026. “Forward bookings are up 48% for premium economy over the next six months, while business and first class cabins are due to see an increase of 10% and 7% respectively,” says Jabr Al-Azeeby, UK Divisional Vice-President at Emirates.

Many legacy carriers across the globe have been ploughing money into upgrading business class, with a focus on high quality and traveller comfort. The aim has been to attract strong demand from leisure buyers buoyed by increased disposable income among older passengers, rather than corporate travellers. This is especially true on long-haul flights where comfort matters.
“Around 70% of customers in business cabins on flights from London are leisure travellers, with around 80% in premium economy,” says Darsh Chapman, Qantas Regional General Manager for UK, Europe and Africa. The Australian airline is undergoing the biggest fleet renewal programme in its 105-year history. For Delta 30-40% of premium seats are filled by corporate travellers, similar to Japan’s ANA.
“Legacy carriers across the globe have been ploughing money into upgrading business class, with a focus on high quality and traveller comfort“
Front loaded
Returns from premium seats have been rising more than for economy, hence the investment. Even though front of plane seats account for only 6% of passenger numbers globally, revenues from these seats fuel the bottom line, particularly for legacy carriers.
“In the third quarter, premium cabin revenue rose 6% year-over-year, while revenue from economy rose less, at 4%,” points out Karolien De Hertogh, Director Sales UK and Ireland at United Airlines.
Strong demand and occupancy has also helped maintain prices. “As of 2025, the cabin occupancy for Prestige Class, Korean Air’s business class offering, reached 84%. This was an increase of over 10% compared to 2019,” said a spokesperson for the carrier.
So what can corporate travellers expect in 2026? Prices will remain elevated yet steady, since global leisure demand is still robust.
Another area of investment is privacy. “This is something we continue to focus on, as well as comfort, which is reflected in the enhanced, private suite-style seating,” states Hiroko Shingo, CX Strategy Director for ANA. For instance, its ‘THE Room FX’ product has a private door for each seat.
Airlines also plan to provide more differentiated services to customers even within the same premium cabin, such as upgrading inflight meals or enhancing amenities. Expect more exclusive products and collaborations. Curated regional dishes are all the rage. This is still an exciting space.
Hey, big spenders
Premium economy has been a focus for carriers in 2025 and this will continue. Emirates has introduced this class of seat extensively in its retrofitted aircraft and the new Airbus A350. It expects to deliver double its capacity in premium economy to four million seats a year by the end of 2026, as part of a $5 billion retrofit programme.
“We’re opting to replace our economy rather than business seats due to increasing demand,” says Emirates’ Al-Azeeby. Its white glove service has also been causing a stir in first class with new dining enhancements, upgrades to tableware and amenity kits.
Lufthansa Allegris is giving travellers unprecedented choice with a range of premium seat options, with no less than five different options in business class alone.

Iberia has been upping its game, particularly on its narrow-body, single-aisle aircrafts. The Spanish airline’s cabin for the A321XLR involves 14 seats in business class that convert to full flat bed, and a layout prioritising privacy and relaxation. The shift earned it Cabin Concept of the Year at awards run by Onboard Hospitality, sister publication to The Business Travel Magazine.
Etihad is also focused on the A321, including new first class suites and business class seats on aircraft out of Abu Dhabi.
“Airlines also plan to provide more differentiated services to customers even within the same premium cabin, such as upgrading inflight meals”
Turning to the US, GoJet Airlines has been upgrading, with an increase in first class seating on its CRJ-550 jet. JetBlue is now pitching hard in this space expanding its Mint service, a premium option with seats that lie flat. The airline is also focusing on higher-margin, transatlantic routes popular with premium business travellers.
Delta continues to invest in new product as well, with a record number of premium seats in 2026 as it expands Delta Comfort and invests in enhancements to the Delta Premium Select and Delta One experience.
United Airlines plans to up its game in 2026 with the delivery of its Dreamliners later in the year with two new business class offerings. The airline’s Polaris Studio suites will be positioned in the first row of each business class section and will be 25% larger, with privacy dividers and wireless charging. These aircraft will have the highest number of premium seats in the airline’s fleet.
Virgin Atlantic is investing by increasing the number of seats at the front of the plane, particularly in its new aircraft, the A330neo, as well as refitting its B787s, with new and expanded upper class cabins.

The Retreat Suite is Virgin’s newest offering. It’s a private space, made for sharing, comprising of a 6ft 7in direct seat to a fully flat bed, touchscreen with Bluetooth, and wireless charging. This setup allows up to four people to comfortably dine or work.
Next year, Singapore Airlines starts the roll-out of its all-new long-haul cabin concept as part of a S$1.1 billion multi-year upgrade programme, while Qantas’ much-anticipated Project Sunrise will see direct flights from Sydney to Europe and New York featuring large first class suites with full-length beds and separate reclining armchairs.
What is interesting is how important front-of-cabin sales are to airlines’ bottom lines. The fact that British Airways is reintroducing first class cabins on flights from Mumbai to Heathrow after five years shows that premium travel is finally back.




