Airlines Keep Selling First Class For $26 — Killing The Reason To Chase Their Top Status

Delta Air Lines led the industry in eliminating first class upgrades. Twenty years ago 90% of first class seats went to upgrades and awards. Ten years ago it was about half. Now only around 12% of seats are left for SkyMiles elite members. And that means on many routes and flights there are no upgrades at all.

Other airlines have copied Delta, monetizing their first class cabins for ‘tens of dollars’ – they will sell once a year coach passengers an upgrade for $26 or $40 rather than giving it free to a $30,000 a year customer.

At just $102 to confirm Atlanta – Los Angeles up front, I don’t even mind that Delta monetizes all its premium seats and almost never provides upgrades anymore.

Definitely an interesting upgrade offer on their flagship suite for this route
by
u/schwa12 in
delta

The real effect of this is to make top status unappealing. It removes upgrades as the argument for status, and that used to be the main motivator. It’s mid-tier status that’s now the sweet spot:

• priority check-in (shorter lines with bags)
  
• priority boarding (overhead bin space)
  
• free checked bags
  
• extra legroom coach seat

The value in being at the top of the list of flyers that do not clear for an upgrade is minimal. Still, the extra value in top status is not zero. I value being able to add an extra segment to an American Airlines itinerary as a backup when my flights are delayed, without having to make the decision to switch flights right away. For many flyers that’s pretty niche. For most it’s not worth chasing.

Delta works to convince flyers that extra legroom economy seats are an upgrade (“The biggest trick the devil in Atlanta ever played ws convincing flyers he doesn’t exist”). They even run an upgrade process to get into those seats. But that just reinforces the notion that status which is sufficient to get into these seats is all you need to work to attain.

The problem for airlines isn’t just that this reduces the incentive for their best customers to keep flying with them. It’s that elite members are the ones most likely to get and spend on their credit cards. And they’ve been leaning into status as the biggest reason for these customers to focus their spending this way.

What I’d like to see is airlines return to offering meaningful benefits even in the face of monetizing unsold first class seats for tens of dollars to once a year customers rather than being willing to upgrade a $30,000 a year flyer into it.

• They could offer a discount on paid upgrades in lieu of complimentary upgrades.

  American Airlines will already discount their tickets, including award tickets, all day long – employees and family members can book ‘AA20’ fares for 20% off. Other airlines have similar programs. So offering upgrades at 20% off for elites could make real sense. Similarly, cobrand cardmembers at Delta and United get discounts on award redemption (really, just charging non-cardmembers more). That model could be replicated with upgrades.

• They could bring back middle seat blocking on flights that aren’t full, keeping the seats next to top elite members empty until they’re actually needed at the gate. That’s easier to manage now that much of gate work is being automated.

I use a $70 per hour rubric on whether it was worth paying to upgrade, though this is dependent on

1. whether I think I’ll get the upgrade free, anyway (and the cheaper the upgrade, the more likely the airline thinks they won’t sell the seat) and
2. what seat I already have (an exit row aisle makes me less likely to pay than a middle seat in back of regular coach).

The truth is though that on a flight up to 1,500 miles I’m perfectly happy with an exit row aisle, secured with status. And I’ve been.. fine? First class gets me a bit of extra seat width, but the meal isn’t worth the buy up and I’m generally not day drinking on domestic flights. I plug in and focus on work for the full flight and barely notice my surroundings.