United Airlines is doubling down on premium economy
Over the coming years, travelers can expect to see the Chicago-based carrier’s Premium Plus cabin expand, with more seats. And more redemption opportunities.
Like its top U.S. competitors, United plans to keep adding more high-end seats to its planes, from its Polaris suites to its domestic first-class recliners — not to mention the premium recliners found in the middle of its long-haul planes.
Speaking on the company’s second-quarter earnings call Thursday, United’s chief commercial officer, Andrew Nocella, said the airline underestimated how much demand it would see for its premium economy product when it installed the mid-tier cabin beginning in the late 2010s.
“We undersized the Premium Plus cabin,” Nocella told analysts. “And that’s a cabin, I think, that’s generating very good returns, and the one that we’ll probably lean more into going forward.”
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A ‘very exciting’ opportunity
United first debuted the seats as a distinct Premium Plus cabin in 2019. It’s a way to offer a higher-end experience than coach but at a price point that’s more affordable than its Polaris business class.
By 2023, the carrier had outfitted its entire long-haul fleet of planes with the intermediate premium offering.
United’s Premium Plus passengers get access to some of the frills of business class, such as priority check-in and boarding. On board, they get larger recliners (somewhat reminiscent of domestic first class) along with better meals and amenities than the main cabin.
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Depending on the flight, the cash and MileagePlus rates fall somewhere between coach and Polaris — sometimes about midway between the two cabins. However, it’s not uncommon to see Premium Plus prices inch closer to business class than economy.
A hit with customers
Like other airlines that unveiled premium economy products in recent years, United drew immense interest from customers at a time when travelers have flocked to higher-end seats.
Still, Premium Plus (shown in purple on the seat map below) represents a fairly small section of the carrier’s planes. For instance, on its Boeing 777-300ER, the 24 recliners total less than 7% of the seats on board.
Expanding that complement of premium seats, Nocella said, represents one of the biggest expansion opportunities ahead of the airline in the coming years, among its cabins.
“Premium Plus is, I think, really a very exciting opportunity as a mid-range product,” he said Thursday.
An overall premium emphasis
United isn’t alone. Nearly every U.S. airline is leaning more heavily into premium seats, including each of the “Big Three” legacy carriers (which also includes competitors American Airlines and Delta Air Lines).
Delta executives last week said the carrier plans to reevaluate its cabin layouts in the coming years as a way to boost its overall complement of high-end seats.
American has said it expects to grow its mix of premium (business and premium economy) seats by 50% by the end of the decade.
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For its part, United’s Premium Plus growth plans come as the carrier gets ready to debut its next-generation Polaris product, which includes an ultra-ritzy studio suite at the front of some of its Boeing 787-9 Dreamliners. That upgrade also features some new bells and whistles in the Premium Plus section.
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