Airplane Classes: Why they exist and how they effect Revenue?

Airlines are moving further towards expanding classes and slowly phasing out First Class to make room for more economic sound options. The idea of class systems has been a long running notion in the travel world. They exist to give airlines a way to evolve and guarantee revenue with the many changes within the industry through the years. With deregulation, rising fuel costs and service value spendings – filling up floor space is key to generating airlines revenue. Through the years, the class systems have been created to adjust to the climate of travel trends, cost of operation, fuel costs, industry regulation, and safety to ensure that travel is both beneficial to the airlines and those who fly on it. The growing trend of tourist travel and demand for low-cost travel has seen the steady rise of economy and economy-plus class systems. With the increase of travel over the past 40 years, airlines have seen the need to find ways to increase revenue while balancing the growing cost of fuel. When broken down, first class is the least profitable of the class systems mostly due to the small number of seats available and the cost it takes to have them on board. Unlike economy class, first class isn’t always filled. Empty seats is loss revenue for the airline. To offset increasing labour and financial costs, airlines have to choose their seats and systems very carefully. How do they gain better value, meet market demands and serve their customers at the same time? That is answered through the way airlines select what classes exist and what doesn’t. Hence, the greater shift of airlines introducing low-cost options and moving away from first class is becoming more and more prominent in the industry. Below, you’ll find an infographic by upgradedpoints that digs into the mind of an airline and you’ll see a breakdown of the different seating systems and ticket prices and why they exist.

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