Once upon a time, turning left upon boarding a plane – toward the business or first class cabin – was an expensive luxury longed for by many, but enjoyed by few. Until the late 1970s, the front of an aircraft was the exclusive reserve of first class, and of those whose bank balances, or businesses, were generous enough to foot the bill. But, as both the desire for, and ease of, long haul travel for business and pleasure grew, the creation of a product between first and economy was warranted.
Both Australia’s Qantas and the now-defunct Pan Am lay claim to being the airline originators of business class cabins, offering perks such as carving stations and cocktail bars to predominantly corporate travellers flying on the company dime, but these were a world away from the ‘suites in the sky’ that now proliferate on many of today’s long-haul flights. As these premium cabins have long been a lucrative profit driver, competition between airlines to attract high-spending travellers to their offering is increasingly fierce. But, a ‘perfect storm’ of factors means both operators and passengers currently, and will likely continue to, face ever higher costs to indulge their thirst for travel.
As revealed by this year’s Global Wealth and Lifestyle Report, the price of business class flights is rising faster than ever – up an average of 18.2 per cent in USD terms compared to 2024. This may seem strange at a time when global conflicts and turbulent stock markets are denting both consumer and investor confidence, but both the way we travel and the products that carry us are changing, and the factors behind these are pushing up prices.
A world of difference: Regional trends for business class prices
There are important regional differences to note in the fluctuations of business class prices, however, and there is one in particular soaring far higher than the others. Prices in the Americas experienced a 39.3 per cent year on year increase in USD terms, more than three times as great as in APAC (+12.6 per cent), and almost seven times greater than in EMEA (+5.9 per cent). Even further nuances can be found in the results for specific cities.
In EMEA, which saw the lowest average increase, prices actually fell in USD terms in Dubai (-4.5 per cent), Frankfurt (-16.9 per cent), Johannesburg (-12.8 per cent) and Milan (-16.4 per cent), while London and Monaco, both popular with affluent travellers, saw prices rise 28.3 per cent and 30.4 per cent respectively, meaning that affordable options were available if travellers picked their destinations wisely.
However, across both APAC and the Americas, journeys became markedly more expensive, with all cities seeing increases. In USD terms, Singapore rose 14.5 per cent and Hong Kong 10.6 per cent, with Taipei experiencing a rise of 37.4 per cent. And even though in USD terms prices slipped -0.2 per cent in Shanghai, they rose 2.1 per cent in local currency. Frequent fliers in the Americas found themselves having to dig even deeper, with New York’s 46.5 per cent rise being dwarfed by the 59 per cent experienced in Santiago de Chile (the most expensive in actual cost terms globally) and the punishing 86.6 per cent rise in Mexico City.
What is the cause of these price differences?
Part of the explanation is that passenger numbers remain 5-10 per cent higher than in 2019, with demand strongest for premium economy, business, and first class fares. These premium cabin travellers have caught the airline industry, long accustomed to price insensitive, straightforward corporate customers, somewhat on the back foot. While business class itself has been transformed in the past decade or so, with most airlines now offering private mini-suites, many legacy carriers are struggling to upgrade quickly enough to retain the loyalty of premium customers seeking paradise in the skies.
Other factors at play include how airline pricing works - rising demand is met by a similar rise in fares – as well as the rising cost of aviation fuel, with prices hitting a 15-month high in June 2025 due to geopolitical conflicts, and a shortage of supply as deliveries of new aircraft and cabin fixtures have been unable to keep pace with demand - any new orders placed today cannot be fulfilled until around 2032.
This ‘perfect’ storm of factors means prices are set to be sky-high for the foreseeable future. Yet, as our Lifestyle Survey shows, this appears to have not dimmed people’s thirst for travel, with around half of respondents across all regions saying they like to travel as much as possible and discover other cultures. A sentiment that is echoed by the broader travel industry, which is having to quickly react to a growing cohort of upscale luxury travellers who like to enjoy their entire journey, from the first moment they set foot in the airport to the relaxed, indulged feeling they expect as they deplane.
Frequently the first-movers, Qatar Airways, whose pioneering Q-Suite has long been the industry leader, recently launched its new cabin offering taking business class innovation to even higher heights; Cathay Pacific is rolling out its stylish new Aria Suite; British Airways’ new Club Suite is giving arch-rival Virgin Atlantic a run for its money, and Ed Bastian, Chief Executive of Delta Air Lines, describes its new Delta One suite as “a first-class product”. Hungrily embraced by travellers, these changes crucially also allow carriers to increase their margin over premium economy.
Why premium cabins mean good business for airlines
The proof is in the figures. Earlier this year, Emirates announced record profits with passengers upgrading their seating choices, with Chair and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum stating “premium cabins contribute significantly to Emirates’ profitability, with strong demand across markets and travel segments”, while Etihad’s Director of Customer Care, Eduardo Correia de Matos, notes they have “noticed a growth in the number of people in premium cabins for personal leisure travel reasons”, a sentiment echoed by Virgin Atlantic who have observed passengers willing to spend more on experiences because they produce lasting memories.
So, while the current surge in premium cabin prices looks unlikely to end soon, given supply chain backlogs and geopolitical issues, the demand for indulgent experiences that linger long in the mind of affluent passengers looks likely to remain. Ultimately, that is why business class means good business for airlines, and an ever more experiential treat for today’s travellers.