News Headlines | Sky-high pitch: The new ways airlines are upselling seats
AI generated summary, Read the full article for complete information.
The article examines how airlines are increasingly monetising extra cabin space by offering “premium economy”‐style upgrades that sit between standard economy and full‑fare business class, with Air New Zealand’s new “Skynest” bunk‑bed concept serving as a key example. The Skynest, installed on select Boeing 787‑9 Dreamliners, provides three‑person triple‑bunk pods complete with curtains, power outlets, ear‑plugs and fresh sheets for just under NZ $500 on top of a regular economy fare, targeting long‑haul travellers willing to pay for a few hours of lie‑flat comfort without the €4,000‑plus price tag of business class. The piece traces the history of seat‑class differentiation from Howard Hughes’ 1955 two‑class system to today’s myriad “premium economy” options, noting that such seats generate disproportionately high revenue per metre of cabin space—McKinsey analysis shows business seats can earn six times the revenue of economy seats, while premium‑economy seats earn roughly double. Airlines favour these low‑cost, high‑margin upgrades because they can be sold as regular economy seats when unbooked, offering flexibility and better utilisation of cabin space, especially as regulatory delays and long delivery times hinder the rollout of new, costly business‑class cabins. The article concludes that, for travelers on routes like Auckland‑New York, paying a few hundred euros for a limited‑time Skynest reservation may be an attractive compromise, albeit with restrictions on age, duration, and amenities.
Read more:
https://www.rte.ie/news/business/2026/0712/1582815-airlines-premium-economy/
#AirNZ #Boeing #TWA #McKinsey #business #HowardHughes
