United Airlines Bets on Premium Seats to Boost Profits
LOS ANGELES — United Airlines is doubling down on a strategy to increase profitability: offering fewer, but higher-quality, seats. The airline unveiled new cabin designs on Tuesday, including on some of its smaller planes, that feature more premium seating options and fewer in standard coach.
The price difference between these seats can be substantial. For example, a flight between United’s hub at Newark Liberty International Airport in New Jersey and San Francisco in the first week of May costs $423 in standard coach, but $5,556 in the carrier’s top-tier Polaris class on a Boeing 757.
Despite recent increases in fuel prices, United executives have consistently reported strong demand, with premium travel leading the way. Andrew Nocella, United’s chief commercial officer, stated last week that, “The main cabin is also improving, and we’ve seen very strong demand across the board for United in Q1, but premium did lead the way yet again in the quarter, and continues to do so.”
More Premium Options
United plans to introduce a subfleet of narrow-body Airbus A321neo jets, dubbed the “Coastliner,” for transcontinental flights. These jets will feature 20 Polaris seats that recline into beds, each with aisle access. The Coastliner will also include 12 premium economy seats and 36 extra-legroom seats, with the remaining seats in regular economy. United has removed three seats from the standard configuration to install a snack bar at the rear of the plane.
Currently, the standard A321neo layout includes 57 extra-legroom seats and 123 standard economy seats, along with 20 first-class recliners, but not the lie-flat Polaris seats. The first Coastliners are scheduled to start flying this summer, with 40 expected to be in service by the start of 2028.
The airline also announced its configuration for its longer-range Airbus A321XLR aircraft, which will replace some older Boeing 757s. This layout will also include 20 Polaris suites, 12 premium economy seats, and 34 extra-legroom seats. The A321XLR is expected to debut this summer and could operate on existing routes to Spain, France, Portugal, and Brazil.
United will also add a seven-seat first-class cabin to its Bombardier CRJ-200 jets, bringing the total number of seats to 41, compared to the current 51-seat layout with a single cabin.
the airline is introducing a new “Relax Row” product in the main cabin, allowing customers to purchase a row of seats that convert into a couch on select wide-body aircraft. This feature is designed for families but can also be purchased by individuals who wish to use the seats as a bed. Nocella indicated that this will debut as early as next year and will be available on more than 200 of its 787 Dreamliners and 777s by 2030.
Industry-Wide Trend
These changes reflect a broader trend in the airline industry, with carriers dedicating more space to premium seats as demand for these options outpaces sales in the main cabin.
Last year, United unveiled an upgraded Polaris suite for long-haul flights on its Boeing 787 Dreamliners, featuring the “Polaris Studio” with larger 27-inch 4K screens and an ottoman.
Delta Air Lines expects premium revenue to overtake main cabin sales this year. Delta announced last month that the first of seven new Airbus A321neo jets will have 44 seats in first class, more than double its usual 20.
Demand for premium seats has been so high that the supply chain is struggling to maintain up, even delaying aircraft deliveries.
Delta has indicated that the larger first-class cabin on the A321neo is a medium-term solution, “intended to be in service for a limited time as Delta awaits delivery of flatbed suites that will ultimately be installed on these aircraft.”
United has been considering lie-flat seats for its newer narrow-body jets for years. CEO Scott Kirby announced in August 2018 plans to offer lie-flat seats on new Boeing 737 Max 10 aircraft, but that plane is still awaiting certification and is years behind schedule.
Other airlines are also increasing premium seating options. JetBlue Airways, a pioneer in lie-flat seats on narrow-body Airbus aircraft, plans to offer a less elaborate domestic first-class cabin later this year. Southwest Airlines recently debuted extra-legroom seats on its Boeing 737 fleet, ending its decades-long practice of standard seating throughout the cabin. Budget carriers Spirit Airlines and Frontier Airlines are also planning to add roomier seats.
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