British Airways says its short-haul business class is booming. Here's why that could be a boost for US budget airlines.
British Airways CEO Sean Doyle said sales in its Club Europe class have "defied our best expectations," The Times of London reported on Tuesday.
While legacy US airlines offer comfier seats and more legroom on all their aircraft, most European carriers have a much simpler premium product on their narrow-body planes.
In the typical 3-3 layout, business class simply has a divider placed on the middle seat. A curtain separating it from the economy cabin can be moved down the aisle depending on capacity.
"After the global financial crisis in 2008, people were saying it wouldn't work," Doyle reportedly said at the International Air Transport Association conference. "And yet it's more popular than ever, especially for leisure passengers."
He pointed to perks like lounge access, priority boarding, and better food-and-drink options.
"There is really important value in short-haul premium for customers, and we are seeing that come through in the numbers," Doyle added, per The Times.
The fact that the hard product — the seat itself — is so similar to traveling in economy means some Europeans don't see the value compared to flying with a budget airline like easyJet or Ryanair.
However, premium options have been in more demand around the world since the pandemic.
That's strained budget airlines, especially in the US. They've been rolling out upgraded offerings in an attempt to attract more customers as their preferences have changed.
For example, Doyle's comments could be particularly welcomed by Spirit Airlines. Last July, it announced a "Go Comfy" option that would include a blocked middle seat in the same style as British Airways' Club Europe.
However, unlike the London-based carrier, "Go Comfy" seats will also have four inches of extra legroom.
Southwest Airlines has also announced premium options, scrapping its signature unassigned-seating policy to encourage passengers to pay for extra legroom.
At the Bernstein Strategic Decisions Conference last week, CEO Bob Jordan said customers want different cabins, a variety of offerings, and "access to premium."
Doyle's comments suggest that the American budget airlines are on the right path.
Even if their offerings aren't as opulent as Delta Air Lines or United Airlines, passengers simply care more about the experience of flying in a premium class.
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