By Leonard Robinson
Passengers eager to fly the open skies are stretching their wallets to take advantage of deals on business class seats thanks to a shortage of travelers for airlines.
Business-class fares are at historic lows. A last-minute business class flight from Indianapolis to London costs roughly $2,000, according to Google Flights. Before the pandemic, travelers could pay upwards of $3,000 or more for the same flight.
According to the International Air Transport Association, the emerging popularity of discount business class seats, especially among passengers who otherwise would have flown economy, is expected to cost airlines roughly $174 billion.
Deutsche Lufthansa AG and Virgin Atlantic Airways Ltd. are beginning to question if business travel will return to its pre-pandemic rate, according to Bloomberg. Both airlines anticipate they will offer a steady supply of premium-class seats priced to sell to the general public, complete with loyalty points, cash, and even a mix of both for the next few years.
In February, Delta Airlines was the only airline to maintain its policy mandating that middle seats remain open to mitigate the spread of the coronavirus.
“We’ll continue to reassess seat blocking in relation to case transmission and vaccination rates, while bringing back products and services in ways that instill trust in the health and safety of everyone on board – that will always be Delta’s priority,” said Bill Lentsch, Chief Customer Experience Officer.
Delta’s competitors, such as American Airlines, Southwest, and United, have rescinded their middle seat policy and lifted capacity limits on flights.
Though vaccination rates are climbing in the Middle East, United States, and the United Kingdom, some vaccinated travelers still prefer more space, making them a prime market for business class seats.
Jennifer Arnold, a retired New York scuba diver, has purposely bought business class travel to keep space between other passengers. Though vaccinated, she says business class provided her with an extra sense of security.
“It was strictly to try to sit in an area with fewer people,” said Arnold. “I wouldn’t have taken this trip if I had to fly in coach while the virus is still raging in so much of the world.”
Numerous passengers, including Arnold, use a combination of points from previous travel to further enhance their savings from low fares.
Brian Kelly, the founder of travel-advice site Points Guy, notes that every first-class flight from New York to Miami in March was completely sold out three weeks in advance of travel.
“I’ve been traveling New York to Miami for years, and I’ve never seen that,” Kelly said.
There is an upside for airlines. Leisure travelers taking an upgrade offset the losses from fewer business trips, especially from executives who previously paid a premium rate for a last-minute in-person business trip and have switched to primarily video conference calls in recent months.
Leisure demand is expected to dominate in the months ahead, while business travel is recovering steadily but at a much slower rate. Australian airline Qantas saw a 65% jump in leisure travelers over the past few months as coronavirus vaccinations continue to climb as business travel remained stable.
Business-class is much different now than before the pandemic. Gone are the porcelain plates, microwaved meals, alcoholic beverages, and hot buffets in airport lounges, said Business Insider columnist Sarah Shah, who chronicled her business-class flight from Dallas to London.
Her concluding thoughts: It’s just not worth it.
