Quantcast

Airlines see surge in paid first-class ticket sales as free upgrades decline

Qantas’ free international Wi-Fi to switch on from next week
The real reason Southwest is charging for bags now
Air France-KLM in ongoing talks with Air Europa on potential stake, CEO says
Frontier Savagely Shades Southwest After They Eliminated Longstanding Free Bag Policy, Sparking Backlash
Frontier Wants You to 'Divorce Your Old Airline' After Southwest Changes
Delta named one of Fast Company's Most Innovative Companies for sustainability initiatives
Passengers escape fiery American Airlines jet in Denver
Delta, American Dive On Slashed Outlooks; But Two Airlines Rally
Competitors are circling Southwest after the airline announced it's going to start charging for checked bags
Exclusive: Dominican Low-Cost Carrier Arajet Wants to Disrupt NYC Market
Boeing deliveries rise 63% in February from a year earlier
Transportation Secretary Duffy Lays Out 10 Ways the FAA Is Working to Upgrade Air Traffic Control and Make Flying Safer
EasyJet pilot Paul Elsworth suspended after flying too close to mountain
Delta Air Lines bets on ‘blended-wing’ flight to reduce emissions
Europe's airlines pivot to bite size M&A deals to limit cost, regulatory burden
Dave Emerson named new CEO of Virgin Australia, replacing Jayne Hrdlicka
Ryanair DELAYS controversial new boarding pass rule to avoid summer chaos
FAA Orders Inspection, Replacement of 737NG Engine Parts
Spirit Adds New Airport, Three Routes
Delta crash passengers should take the $30,000 payment, their lawyers say. Here’s why.
Budget airline launches new cheap flights to one of the UK’s top winter sun destinations
Brazilian airline Azul to go 'back to basics' after challenging 2024
Airlines cancel flights as air travel to ‘grind to complete halt’ this week ahead of major strike action in Europe
Dramatic moment American Airlines plane diverted to Rome is escorted by fighter jets after mid-air bomb threat
Jetstar Faces Major Backlash as Nationwide System Outage Causes Travel Chaos, Stranding Passengers and Disrupting Flights Across the Australian Airline Industry
Sudden oil supply outages creating turbulence for airline industry
Southwest's layoffs dent its worker-first culture
Abu Dhabi's long-haul carrier Etihad Airways sees record $476 million profit in 2024
Jet2 warns of profits squeeze from rising costs and late bookings
Southwest bends further to activist shareholder Elliott's demands
Airlines see surge in paid first-class ticket sales as free upgrades decline
Research
Webp 2brmc733gq3wzxudgavjdrbpjdqv
Kristy Tolley Editor | The Points Guy

Delta Air Lines has reported a significant change in its first-class cabin dynamics over the past 15 years. According to Delta executives, only 12% of passengers paid for their first-class tickets in 2009. Today, about 75% of those seats are purchased outright, reducing the availability of free upgrades for elite status members.

"The biggest loss leaders on the airplane in 2010, and before, were the premium products," said Glen Hauenstein, Delta's president, during an investor day presentation on November 20. "We didn't sell them," he added, referring to previous practices of offering free upgrades to elite members.

Hauenstein attributed this shift to a strategic reduction in the price gap between coach and first-class seats. In 2010, a first-class seat was approximately 13 times more expensive than a coach seat. Currently, this difference is much smaller; for example, on flights from Raleigh-Durham International Airport (RDU) to Los Angeles International Airport (LAX), first-class fares are about two and a half times the cost of main cabin tickets.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

"We brought the separation way down. We've made them much more affordable," Hauenstein told investors. "And guess what — when you make something affordable, people want to buy it."

Other U.S. airlines have observed similar trends as they capitalize on increasing demand for premium seating options. Enhanced technology allows airlines to offer strategically priced paid upgrades after booking but before flying.

Kerry Tan, an economics professor at Loyola University Maryland specializing in airline industry research noted that airlines have become more adept at filling seats profitably since emerging from financial challenges earlier this century.

"As airlines emerged from bankruptcy [in the early 2000s and 2010s], I saw them going from what I would call 'market share maximizers' to now 'profit maximizers,'" Tan said.

In response to these market dynamics, airlines are expanding their premium offerings. Frontier Airlines recently introduced "Upfront Plus" accommodations with blocked middle seats as part of its pivot toward premium services.

JetBlue President Marty St. George highlighted customers' continued willingness to pay for upgraded experiences: "We've got very clear data showing 'buy-up' revenue and customers who are buying into more premium products."

Despite these developments favoring paying customers over complimentary upgrades for elite members navigating competitive upgrade queues remains challenging due largely due partly overcrowded status tiers cited by Delta when revamping its SkyMiles program last year along record frequent flyer sign-ups across major carriers recent years

High-level status can still improve chances at securing an upgrade while also considering alternative strategies like leveraging credit card spending earning guaranteed certificates taking advantage dynamic cash opportunities maximizing non-upgrade perks offered through airline programs or cobranded cards

Organizations Included in this History
More News

Delta Air Lines is expanding its flight offerings for the 2025 pro football season, introducing new routes and increasing capacity to accommodate fans traveling to major games.

Jun 6, 2025

Last month, over 130 volunteers from Delta Air Lines and several partner organizations collaborated to construct a new playground in College Park, Georgia.

Jun 6, 2025

Walking together on Omaha Beach, 19-year-old college student Caleb Walker and 101-year-old WWII veteran Jack Myers reflected on the sacrifices made during the D-Day invasion.

Jun 6, 2025

British Airways is the leading foreign long-haul airline serving the United States.

Jun 5, 2025

United Airlines has completed a deal with the Chicago Department of Aviation to acquire five additional gates at Chicago O'Hare International Airport.

Jun 5, 2025

Boeing has reached a production milestone, achieving a monthly output of 38 737 MAX aircraft for the first time since 2020.

Jun 5, 2025