Airlines are launching upgraded luxury suites as they fight to win the premium customer.
United and American unveiled upgraded suites and new premium features in May that their fleets will be equipped with in order to capture premium flyers, which contributes significantly to airlines’ revenue. Meanwhile, Delta Air Lines’ new cabin design, which features upgraded Delta Premium Select and First Class seating, has been rolling out across its fleet since last fall.
“It’s a full-on arms race when it comes to premium suites on planes,” Clint Henderson, managing editor of travel website The Points Guy, told FOX Business, adding that all the major carriers are aiming to “claim the mantle of being ‘most-premium.'”
“The airlines realize the premium traveler is increasingly demanding, and they also happen to be the most profitable passengers for the airlines, so there is even more reason to invest here,” he added.
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Not only does this segment offer higher margin sales opportunities compared to economy class, but “the demand for business class seating has increased in tandem with the rising global wealth and the expanding business travel sector,” according to GrowthCatalyst Research.
In turn, “premium seats, which are often equipped with state-of-the-art amenities, have become a core focus for airlines aiming to meet the preferences of their high-end clientele,” the firm said.
American’s newest Boeing 787-9 aircraft will be equipped with its Flagship Suite seats, which will be situated at the front of the aircraft for long-haul international flights. The suites will have privacy doors and more personal storage space with a wireless charging pad. They also come with a chaise lounge seating option with an adjustable headrest pillow.
Customers will receive a multi-course meal that is curated to pair with wines, amenity kits containing luxury skincare items and a duvet blanket and pillow with cool touch fabric on one side and traditional fabric on the other.
Customers of the Flagship Suite service will also receive priority check-in, security, boarding and baggage handling as well as access to American’s Flagship lounge with complimentary dishes and cocktails.
“Every aspect of our new 787-9 is designed to feel premium in nature,” American’s Chief Customer Officer Heather Garboden said in a statement.
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Aside from the 787-9 aircraft, the Flagship Suite seats will be available on newly delivered Airbus A321XLR aircraft and American’s retrofitted Boeing 777-300ER, the airline said.
American said 30 of its new upgraded 787-9 jets will join the fleet family through 2029. The airline expects to grow its lie-flat and premium economy seating by 50% by the end of the decade.
In short order, United Airlines announced that its new Boeing 787-9 aircraft will offer a larger upgraded selection of premium business class seats and two new business class suites called the United Polaris Studio.
Specifically designed for long-haul international flights, the suites will be positioned at the front of each business class section and will be 25% larger than the current premium business class seating. They will feature 27-inch 4K OLED seatback screens, Ossetra caviar amuse-bouche service, Starlink connectivity, luxury skincare amenities and exclusive entrée options.
There will be a total of eight, lie-flat, all-aisle-access seats, which will also be equipped with privacy doors and an extra ottoman for guests.
All of United’s future Boeing 787 deliveries will receive United Polaris Studio suites. The first delivery is expected before the end of 2025.
United said its standard business class seats will also get upgraded to suites with sliding doors and larger, 19-inch 4K OLED screens. There will be a total of 99 premium seats, which the airline claimed was the highest percentage among U.S. carriers.
In the fall of 2024, Delta Air Lines began rolling out its new cabin design across its Boeing 757 aircraft flying on domestic and short-haul international routes, followed by its Airbus A350 jets in early 2025.
Its premium select and first-class seating includes a new seat cover over memory foam cushions with “breathable engineered leather.”
The changes highlight how airlines are vying to maintain a competitive edge, not just over U.S. airlines but their global competitors too.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DAL | DELTA AIR LINES INC. | 48.69 | +0.18 | +0.38% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 80.86 | -0.38 | -0.46% |
| AAL | AMERICAN AIRLINES GROUP INC. | 11.38 | -0.03 | -0.26% |
“As international business continues to expand, particularly in emerging economies such as China, India, and the Middle East, airlines are making substantial investments in business class upgrades to attract this lucrative customer base,” according to GrowthCatalyst Research.
Henderson specifically noted that U.S. carriers are trying to catch up to competitors like Singapore Airlines, Starlux and Emirates, which have invested heavily in first-class and business-class cabins for years.
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