Airlines Shift to Premium as Jet Fuel Doubles — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Air France has put €1 billion over five years into lounges, cabins and improved Wi-Fi, while spending another €1 billion a year on fleet renewal; first-class Paris-New York return tickets start just below $14,000.
- Air France said its combined first- and business-class sector grew 28.1% in 2025 and 26.9% in 2024, while economy revenue stagnated.
- Jet fuel accounts for 30% to 40% of airlines’ expenses and has more than doubled since the start of the year, with the surge linked to the U.S.-Israeli war with Iran.
- IATA forecast passenger traffic across all classes to rise 2.1% this year, versus 5.3% last year, as overall travel growth slows.
- John Strickland said airlines are reducing total seat counts to expand premium sectors, but warned that major investments and capacity cuts cannot be reversed if demand worsens.
- LATAM Airlines Group CEO Roberto Alvo said airlines with robust premium offerings would emerge strongest from the economic turmoil, while budget carriers would struggle and consolidation would follow.
- Delta Air Lines is targeting the upper end of the “K-shaped economy” as traditionally low-fare U.S. carriers including Southwest, Frontier, JetBlue and Allegiant move upmarket.
Why it matters: Air France has put €1 billion over five years into premium service upgrades, and its first- and business-class sector grew 28.1% in 2025 while economy revenue stagnated. The redistribution favors premium travelers: airlines are cutting overall seats for higher-fare cabins even as IATA’s June forecast put all-class traffic growth at 2.1%, versus 5.3% last year.
Ask SkimNews
