Airlines invest in business class as premium revenue climbs

Business class cabins are becoming the most profitable part of many airlines' operations, and the passengers paying the highest fares are shaping how those cabins are designed. A report by McKinsey & Company found that business class ticket revenue nearly matched economy class revenue on a standard transatlantic flight between London and New York.

Airlines have responded with large retrofit programmes. Singapore Airlines is spending S$1.1 billion to install new cabin products across 41 Airbus A350-900s. American Airlines is overhauling 20 Boeing 777-300ERs and increasing business class from 52 to 70 seats per aircraft.

Demand for premium travel is rising, and privacy, extra space and brand identity remain the main drivers, according to the article.

Features that once defined business class, such as fully lie-flat seats, lounge bars, champagne and fast-track access, are now considered the baseline rather than what distinguishes the cabin. A product with an enclosed suite but a narrow bed and a sparse amenity kit would not compete, the source states.

Airlines are focusing on 1-2-1 layouts, privacy doors, wide lie-flat seats, sofas, smarter technology and personalisation. SWISS launched its Senses business class product in late 2025, offering five seating options within the cabin: Classic Seat, Privacy Seat, Extra and others.