facebookIs first-class profitable for airlines? - Seedly

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Anonymous

10 Feb 2020

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SeedlyAMA

Is first-class profitable for airlines?

Hi, i was just wondering if first-class is profitable for airlines? like do they earn a lot of money when people fly first-class? or are they actually making a loss? not really miles-related, but just wondering!

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Revnue 1st class is profitable for airlines!

Sometimes airlines like Emirates and SQ just want to have an awesome first class product to show off how great flying with them can be. It is meant to be a flagship product that may or may not be profitable by itself.

However, the trickle down effect of people associating these airlines as more luxurious (even though Emirates has a ridiculous 2-3-2 config in business class) and are more willing to pay more to fly with these airlines. In the grand scheme of things, first class is still likely to be profitable. Airlines would scrap it otherwise (as MH and KE have done).

Cedric Jamie Soh

23 Dec 2019

Director at Seniorcare.com.sg

Yes first class is very profitable per seat.

Unfortunately most airline body lose money if they allocate too much first class and couldn't get it filled. So thats a big problem because every empty seat is a big revenue wasted.

Airbus A380 is one of this plane that can have many first class seat empty as it flys... giving airline a big headache.

One of the reasons why A380 didn't sell well....​​​

I believe airlines have a revenue-pricing model that accounts for the no-shows and half-booked first...

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