Premium economy barely existed 30 years ago. Now it's the most profitable cabin per square metre for many long-haul airlines, and two carriers — Virgin Atlantic and Air New Zealand — have quietly turned it into a signature product.
Both were early movers. Virgin Atlantic launched its premium economy back in 1992, one of the very first airlines to do so alongside EVA Air, while Air New Zealand followed in 2005. Just as tellingly, both commit serious space to it: Virgin Atlantic cabins run from 35 to 56 seats depending on the aircraft, and Air New Zealand fits up to 54. Virgin Atlantic is frequently rated as having Europe's best premium economy, with service and catering drawing particular praise; Air New Zealand wins fans for generous legroom, a decent recline and consistent service.
The pitch is simple. On a route like New York to London, business class can cost three or four times a premium economy fare, while the gap between premium economy and economy is often small. You don't get a lie-flat bed, but you do get a wider seat, around 38 to 42 inches of pitch, better food and a calmer cabin.
Why the boom? Two shifts. Companies have tightened travel budgets since COVID and increasingly book staff into premium economy instead of business. Meanwhile, 'premium leisure' travellers — price-sensitive but happy to pay for comfort — have exploded in number. Airlines love the cabin too: with six or eight seats per row versus the four-abreast layout of business pods, they can squeeze in more than twice as many seats in the same footprint, and fares hold up well.
One caveat before you click 'buy'. Premium economy is much closer to economy than to business in what you actually get: a bigger seat and screen, but rarely lounge access, and catering that's only a step up. When fares creep close to business class prices — which happens because cabins are often too small to meet demand — the value case collapses. The sweet spot is a fare priced nearer to economy, and that's increasingly common as airlines retrofit and enlarge these cabins.
For anyone flying long-haul who can't justify a business fare but dreads ten hours in standard economy, checking whether your airline has invested properly in this cabin is worth ten minutes of research. On that front, Virgin Atlantic and Air New Zealand set the standard in their regions.
Story via Simple Flying.
