US airlines have focused on high-end travel post-pandemic to boost profits. Premium ticket revenue for Delta Air Lines rose 5%, while United Airlines saw a 5.6% increase in premium revenue. Premium cabins are now the profit differentiator due to less price sensitivity. Carriers are investing more in premium offerings for stability.

However, demand for main cabin seats has weakened, affecting lower-income travelers. JetBlue plans cost-cutting measures as demand remains soft. Carriers like Frontier and Spirit Airlines are cutting flights to prevent discounting pressure. Premium cabins are seen as stable revenue sources during economic shifts.

Delta and United’s diversified revenues, including from premium cabins, outperform the industry. Premium cabins are becoming more attractive, with United unveiling new premium suites. Alaska Airlines aims to increase premium seat share to 29%. Budget airlines are entering the high-end market to boost margins.

The rush to add premium seats may affect aircraft deliveries and pricing power. Alaska CEO believes premium travel is about the experience, not just the seat. Premium cabins offer stability in revenue and are crucial for airlines’ post-pandemic success.

Read more at Yahoo Finance: US airlines’ premium travel strategy is paying off amid demand slump