How first class air travel is about to get even more luxurious: Hong Kong’s Cathay Pacific, Emirates, Lufthansa, Qantas and more airlines are making over their cabins for the ultimate holiday splurges
- Despite slowing economic growth and a cost-of-living squeeze, airlines from Emirates and Lufthansa to Qantas and Air France are betting on travellers willing to splurge, especially after Covid-19
- Singapore Air’s standard A380 first-class suite takes up about 50 sq ft, or almost a third of the size of an average Hong Kong flat, while Lufthansa offers a personal assistant
Airlines are reinvigorating first class as deep-pocketed customers embrace travel again, taking luxury to new heights up in the sky.
The investment is happening despite slowing economic growth and a cost-of-living squeeze. Airlines are betting that enough people are willing to splurge on flying in style after being grounded by Covid-19 and denied the chance to travel.
“Leisure travellers in particular continue to book flights in business or even first class,” Deutsche Lufthansa AG CEO Carsten Spohr said during an earnings call in March. “This year is the first year all my team tell me, ‘Spohr, we need to grow first class,’” he told investors last week.
The German airline is investing US$2.7 billion over two years to revamp its long-haul aircraft under a programme it has named Lufthansa Allegris. Qantas Airways Ltd. is also showcasing a plush new first class, a realm that’s typically beyond the reach of ordinary passengers – the closest most people get is a stolen glance as they shuffle conga-line style to the plane’s exit doors.
Why now?
The International Air Transport Association estimates that airlines suffered about US$200 billion in losses over the past three years as the pandemic wreaked unprecedented havoc. They desperately need to claw some of that back, and first class has become a potential gold mine. Premium travel, which also includes business class, is back to 86 per cent of 2019 levels, according to IATA, while total air travel demand, including economy class, is at 81 per cent.
Even with first class fares going for more than 10 times as much as standard economy seats, demand is there – either for bookings with cash or the rare opportunity to use up miles accumulated on credit cards during the pandemic.
“There is still a large amount of excess savings,” said David Mann, chief Asia economist at Mastercard Inc. “The willingness and the ability to spend doesn’t look like it’s going away any time soon, which most likely explains why airlines are making announcements.”