Airlines Cut First Class as Business Cabins Match Its Comfort at Lower Cost
Why It MattersPremium cabin investment is shifting from a top-tier first class toward high-specification business class, leaving first class as a selective product on flagship or high-demand routes rather than a fleet-wide standard.
A growing number of airlines are scaling back or removing first class cabins, citing economics, passenger preferences and long-haul route demands. A single first class seat can occupy the same footprint as two or three business class seats, which are often more profitable per square foot. First class cabins also tend to fly with lower load factors than business class, and they require additional crew, specialized catering and dedicated lounge facilities.
Business class has evolved to narrow the gap, with lie-flat seats, direct aisle access, suites or sliding doors for privacy, and chef-curated dining. Products such as ANA's 'The Room' and Qatar Airways' 'Qsuite' reflect this investment. Corporate travellers, facing tighter travel budgets and closer expense scrutiny, increasingly favour business class, while leisure travellers with disposable income often choose premium economy or business class for value.
Per IATA and Centre for Aviation figures, international premium class travel (first plus business) grew 11.8% year-on-year in 2024, versus 11.5% for international economy. There were 116.9 million international premium passengers in 2024, equal to 6% of all international passengers. Asia Pacific led premium growth at 22.8% to 21 million premium passengers, although economy there grew 28.6% to 500.8 million. The Middle East had the highest premium share at 14.7% of travellers, while Europe had the most premium passengers at 39.3 million.
Airline decisions are mixed. American Airlines is eliminating first class on international long-haul flights in favour of expanded business class (Flagship Suites) after demand fell. Korean Air removed first class from most long-haul routes except some flagship or high-demand ones. Thai Airways plans to discontinue Royal First Class over the next two to three years as part of restructuring. By contrast, Etihad Airways is introducing first-class suites on its A321LR narrowbody aircraft, and Air India is re-introducing First Class with private suites on its A350-1000s.
