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-   -   Is International First Class Profitable? (https://www.flyertalk.com/forum/travelbuzz/1544895-international-first-class-profitable.html)

rankourabu Jan 25, 2014 2:29 pm


Originally Posted by lloydah (Post 22220780)
those who can afford it do it all the time..

I disagree with that statement - a lot of people can afford it, but will not see any value in it over biz, and not fly F "all the time"

Eastbay1K Jan 25, 2014 2:49 pm


Originally Posted by rankourabu (Post 22221318)
I disagree with that statement - a lot of people can afford it, but will not see any value in it over biz, and not fly F "all the time"

There's people who "can afford it" and people for whom money is no object. Those probably fly F over J "all the time."

roberino Jan 25, 2014 3:31 pm


Originally Posted by Eastbay1K (Post 22220064)
It might for some. Yet the "2 cabin" airlines often have a much better J product than the 3 cabin airlines. I generally want to be in the airline's front cabin. I'd rather be there at the time of booking than some illusory chance of a last minute UG to an F cabin. The airlines that have a luxurious F cabin don't generally make it something that one can easily upgrade into.

Is that still true? I thought that the new J class in many airlines with F cabins was of a much higher quality, e.g. LH, AA, and that J on Emirates was better than most F. Not that I've flown in anything other than Y...

You want to go where? Jan 25, 2014 3:41 pm


Originally Posted by dieuwer2 (Post 22217738)
Also, First class offerings are not consistent across airlines. For instance, First class on AF might be considered equal to business on KE or SQ. While First class on EK or SQ is of a completely different order.

While I admit the possibility that First Class on EK or SQ is of a completely different order than First Class on AF, I disagree that First Class on AF would be considered equal to business on KE (or EK) and SQ. AF F offers an exclusive cabin, a wonderful lounge (in Paris)with car to the plane, etc, far more pleasant than EK/SQ business, even at its best. Now whether it is worth paying the upcharge for the increased pleasantness is another question.

More on topic to the particular question at hand - it is quite possible that airlines run an F class as a loss leader to position themselves as a high-quality carrier across all classes. Airlines that do this don't need to do this on every flight. Offering F class on a few signature routes is enough.

lloydah Jan 25, 2014 4:58 pm


Originally Posted by rankourabu (Post 22221318)
I disagree with that statement - a lot of people can afford it, but will not see any value in it over biz, and not fly F "all the time"

Maybe, but if the cabins are reasonably then full someone's paying. It's not all upgrades. We'll never really know if those in J could go F or not will we? There are some excellent offers in F about, perhaps airlines are trying to fill the cabin so they can tell themselves it's worth having one - as has been said, kudos for the airline so they can project a certain image. And isn't it probable that there are more seats taken in J on company business then paid for personally?

makin'miles Jan 25, 2014 6:21 pm

Onboard service aside, the F value proposition also includes ground services. This might not be something overly exciting with US carriers, but many international airlines offering great F class products also do a great job with F ground services - think LH/LX/AF/SQ etc.

WindowSeat123 Jan 25, 2014 10:16 pm


Originally Posted by tommyleo (Post 22219571)
That's very poor reasoning.

Sometimes it takes a business quite a while to cut a money-losing product line. But by your logic, the mere fact that a product-line exists means that the product is surely profitable.

If only running a business were that easy!

BTW, I've flown UA international first class. It's a joke to call it "first class." I've had better overall experiences in J on several other airlines.

How do you know all of them are losing money? It is very poor reasoning to make blanket statements without solid data to back-up your claim.

Some airlines don't find it profitable so they replace it. Others still retain it. How can you be so sure sure those airlines that retain it must all be getting rid of it? How can you be so sure that just because some airlines find first class unprofitable means ALL airlines with first class unprofitable?

P.S-If you think UA's first class is the "industry standard" for first class quality and performance, you really haven't flown first class much. Sorry to be blunt, but that's the truth.

Pulley Jan 26, 2014 6:37 am

Interesting discussion. CX's second flight from ORD & the EWR do not offer F. If I'm not mistaken one of the SFO & JFK flights also switched to no F. Now is CX doing this because it is not profitable or are they just trying to get more business passengers in J?

slawecki Jan 26, 2014 7:23 am

a better question,"what is the most profitable use of the space?'

sbm12 Jan 26, 2014 8:36 am


Originally Posted by WindowSeat123 (Post 22218227)
There are still quite a number of major international carriers (and two US ones-UA and AA) that still offer first class, it is not as niche as you claim. If those carriers found first class unprofitable, they would have eliminated it long ago (since airlines are so fanatical in controlling cost). The fact these airlines have retain it means it does make money for them. Hence it is profitable enough for them to keep it.

AA is cutting F on its fleet. So is UA. So are CX, EK, SQ, LH and others.

It is a niche product with shrinking demand. Some routes/markets can support it and those may continue to see such offerings. But that's the very definition of a niche product.

WindowSeat123 Jan 27, 2014 4:12 am


Originally Posted by sbm12 (Post 22225233)
AA is cutting F on its fleet. So is UA. So are CX, EK, SQ, LH and others.

It is a niche product with shrinking demand. Some routes/markets can support it and those may continue to see such offerings. But that's the very definition of a niche product.

UA is keeping F on intercontinental flights.

But what exactly is "niche product" definition anyway? If you want, first class has always been a "niche" product since only a relatively small percentage of passengers fly on it. But it is not "niche" from the standpoint of revenue since a big chunk of their profit historically comes from it.

I would have to see their revenue contribution by class to determine if it really is a "niche" product.

sbm12 Jan 27, 2014 12:00 pm


Originally Posted by WindowSeat123 (Post 22230339)
UA is keeping F on intercontinental flights.

Only somewhat. New deliveries (and the last of the 763 conversions) are 2-cabin only right now and there has been no commitment to future 3-cabin products made in any official capacity. They're not ripping it out like LH is, but they're definitely not growing the number of seats available.

And it is, IMO, niche in that only certain markets can support it. That may have always been true but the airlines are finally doing something about it. There's also the problem of Business Class being too good so that it rarely is worth the premium to move up to F. Lufthansa execs went on record lamenting the flat-bed C/J seat as destroying their F yields.

SeriouslyLost Jan 27, 2014 1:26 pm


Originally Posted by You want to go where? (Post 22221693)
More on topic to the particular question at hand - it is quite possible that airlines run an F class as a loss leader to position themselves as a high-quality carrier across all classes. Airlines that do this don't need to do this on every flight. Offering F class on a few signature routes is enough.

I was wondering how long it would take someone to say that. :) If you look at where F is mostly flown then I'd say you're probably right. I'd say it's not a profit center for many airlines, it's a marketing decision. If they can make money on it then that's probably a bonus.

rankourabu Jan 27, 2014 4:28 pm


Originally Posted by WindowSeat123 (Post 22230339)
UA is keeping F on intercontinental flights..

gotta keep the upgraders happy!

Seriously, United F is a very sad excuse for First Class.

LelandWB Jan 28, 2014 1:28 am

I think it's mainly about just capturing the people who would take first class in the first place... usually those sorts of people do a lot of air travel, and even though when you look at it from a purely cost perspective it doesn't make too much sense, from the marketing and loyalty perspective, it is reasonable.


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