Airlines are devoting more cabin space, lounges and catering budgets to premium travel as higher jet fuel prices eat into their profits, the Times of India reported on 8 November, citing the news agency AFP1. The fuel shock is linked to the Iran war, and premium services have become an increasingly important source of revenue1. Volodymyr Bilotka, a professor at Purdue University who specialises in aviation economics, told AFP that a business class seat can take up the floor space of up to four economy seats but may be priced five or six times higher1. "Airlines have traditionally been investing quite a lot into the premium offerings because the profit margins are significantly higher," he said1.

The pressure shows in industry forecasts. In June, IATA halved its forecast for 2026 airline net profit to $23.0 billion, a net margin of 2.0%, down from an earlier projection of $41 billion2. It expected jet fuel to average $152 a barrel this year, almost 70% above the 2025 average of $90, and fuel to make up 31.4% of operating costs, against 25.4% in 20252. In its latest weekly reading, IATA's Jet Fuel Price Monitor, which uses Platts data, put the global average jet fuel price at $191.54 a barrel3.

How much is fuel costing airlines?

Third-quarter results in the United States show the scale of the increase. American Airlines paid an average of $3.85 per gallon, which raised its fuel expense by $1.9 billion, or 67.5%, and it reported an adjusted net loss of $182 million on record third-quarter revenue of $16.3 billion4. For the fourth quarter it expects to pay about $4.70 per gallon, nearly double what it paid a year earlier4. Delta Air Lines paid an adjusted $3.61 per gallon, 60% more than a year before, and expects to absorb a $6 billion increase in fuel costs over the full year5. At United Airlines, fuel expense rose 61.6% to $4.84 billion, at an average of $3.90 per gallon6.

European groups are partly shielded by hedging. IATA said European airlines had hedged around 70% of their fuel needs before the crisis, but warned that higher costs would feed through as those hedges roll off2. Air France-KLM said higher fuel prices cost it €436 million after hedging in the third quarter, and it now expects a full-year fuel bill of $9.2 billion, $2.3 billion more than in 20257. Lufthansa Group reported €543 million in extra fuel costs for the quarter and expects a 2026 fuel bill of €9.3 billion8. Both groups still increased their adjusted operating profit in the quarter78.

Why are airlines adding premium seats?

Premium revenue is growing strongly. American's premium revenue rose 22.9% year on year in the third quarter, against 19.5% for its main cabin, and the airline says premium products generate roughly half of its ticket revenue on approximately 30% of its seats4. It expects the share of premium seats on its narrowbody aircraft to rise to 40% in the coming years through a retrofit programme4. Delta's premium ticket revenue grew 18% to $6.82 billion, slightly more than its $6.80 billion main cabin revenue, on a 6% increase in premium seats5. For the fourth quarter, Delta expects seat growth of less than 2%, including a reduction in main cabin seats5. United's premium revenue rose 17%6.

The pattern is similar in Europe. On Air France-KLM's passenger network, yields in La Première and business class rose 11.5% in the third quarter, against 5.0% in economy, while the group said premiumisation added 0.5% to its unit costs7. At Lufthansa Group's network airlines, yields rose 6.8%, with demand driven in particular by the premium segment and by traffic to Asia and North America8. According to the Times of India report, consultancy Cirium estimates that premium seats made up 19% of capacity at 42 alliance and Middle Eastern airlines, up from 17.1% in 20191.

How is this changing widebody cabins?

On 5 October, British Airways revealed new cabins for its retrofitted Airbus A380s, with 106 Club Suite business class seats across the entire upper deck9. The first retrofitted aircraft is expected to enter service in the coming months9. According to The National, the refit reduces the A380's seat count by 11%, from 469 to 417, with economy cut by about 30% to 215 seats, and each retrofit takes about 100 days10. Read more on our British Airways page.

Delta says its Airbus A350-1000, arriving in 2027, will have a 50% premium seat mix11. United has extended its premium-configured Boeing 787-9 to routes from San Francisco to Zurich and Seoul; the aircraft has 99 premium seats, including 8 Polaris Studio suites and 56 Polaris seats6. Air France-KLM, meanwhile, has trimmed its 2026 capacity growth outlook to about 2%, from a previous range of 2% to 3%7. See our Delta page and our Lufthansa page for how to become a pilot at each airline.

What does it mean for pilot and cabin crew hiring?

Higher fuel bills are already slowing growth at some carriers. American expects its network growth in 2027 to slow from 2026 levels because of elevated fuel prices4. Air France-KLM said recruitment of non-operational staff remained paused7. Short-haul low-cost carriers have cut winter flying: easyJet is removing another 600,000 to 700,000 seats from its winter schedule, on top of about 700,000 seats it cut earlier in the summer12. Wizz Air, which cut its winter capacity by 5%, has offered first officers at London Luton the chance to leave on voluntary terms, the British Airline Pilots' Association confirmed13. We covered that offer in our report on Wizz Air's Luton first officers.

Network airlines are still adding long-haul routes. United plans service to 10 new international destinations from summer 20276. Delta has announced new international routes starting in 2027, including Seattle to Tokyo-Narita and Austin to Paris-Charles de Gaulle5. Lufthansa Group's network airlines grew seat capacity by 1.6% in the third quarter, primarily on long-haul routes8. Delta said its non-fuel unit costs rose 7.3%, driven mainly by higher crew costs and revenue-related costs, while capacity grew less than originally planned5. At British Airways, specially trained First Service Specialist cabin crew will deliver a new dining service in every First cabin across its long-haul fleet, the airline says9.

Boeing does not expect near-term disruptions to affect long-term aviation growth14. Its 2026 Pilot and Technician Outlook projects a need for about 674,000 new pilots and 1,023,000 new cabin crew members worldwide through 2045, including 153,000 pilots in the region Boeing calls Eurasia and 122,000 in North America14. Two-thirds of that demand is to replace retiring staff, Boeing says14. In April, British Airways opened applications for its fully funded Speedbird Pilot Academy for the fourth year running, committing £18 million for up to 160 places, each covering the £100,000 cost of training15. For a first officer's route to a widebody, see our guides on how a type rating works and your first job after pilot training. Pay at the airlines named here is covered in our airline pilot salary overview and our page on American Airlines pilot pay.