Go Back  FlyerTalk Forums > Travel&Dining > TravelBuzz
Reload this Page >

Is International First Class Profitable?

Community
Wiki Posts
Search

Is International First Class Profitable?

Thread Tools
 
Search this Thread
 
Old Jan 25, 2014 | 2:29 pm
  #16  
Suspended
 
Join Date: Jan 2002
Location: Canada
Programs: UA*1K MM SK EBG LATAM BL AC*E50
Posts: 23,584
Originally Posted by lloydah
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"
rankourabu is offline  
Old Jan 25, 2014 | 2:49 pm
  #17  
A FlyerTalk Posting Legend
20 Countries Visited
3M
Conversation Starter
25 Years on Site
 
Join Date: Jul 1999
Location: Over the Bay Bridge, CA
Programs: Jumbo mas
Posts: 42,580
Originally Posted by rankourabu
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."
Eastbay1K is offline  
Old Jan 25, 2014 | 3:31 pm
  #18  
1M
40 Countries Visited
60 Nights
15 Years on Site
 
Join Date: Nov 2008
Location: South Yorkshire, UK
Programs: VS Silver
Posts: 2,478
Originally Posted by Eastbay1K
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...
roberino is offline  
Old Jan 25, 2014 | 3:41 pm
  #19  
 
Join Date: May 2004
Programs: BA blue, LH Senator, KQ (FB) gold
Posts: 8,214
Originally Posted by dieuwer2
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.
You want to go where? is offline  
Old Jan 25, 2014 | 4:58 pm
  #20  
All eyes on you!
10 Years on Site
 
Join Date: Jun 2012
Location: East Anglia UK
Programs: BA-S UA LH-Sen KLM/AF-Plat.
Posts: 1,699
Originally Posted by rankourabu
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?
lloydah is online now  
Old Jan 25, 2014 | 6:21 pm
  #21  
All eyes on you!
25 Years on Site
 
Join Date: Feb 2001
Location: here and there...
Posts: 4,360
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.
makin'miles is offline  
Old Jan 25, 2014 | 10:16 pm
  #22  
 
Join Date: Oct 2013
Posts: 537
Originally Posted by tommyleo
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.

Last edited by WindowSeat123; Jan 25, 2014 at 10:21 pm
WindowSeat123 is offline  
Old Jan 26, 2014 | 6:37 am
  #23  
All eyes on you!
15 Years on Site
 
Join Date: May 2007
Location: Beaufort, SC
Programs: Delta, Alaska Air, & BA
Posts: 548
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?
Pulley is offline  
Old Jan 26, 2014 | 7:23 am
  #24  
FlyerTalk Evangelist
 
Join Date: Dec 2000
Location: south of WAS DC
Posts: 10,131
a better question,"what is the most profitable use of the space?'
slawecki is offline  
Old Jan 26, 2014 | 8:36 am
  #25  
A FlyerTalk Posting Legend
10 Countries Visited20 Countries Visited30 Countries Visited20 Years on Site
 
Join Date: Apr 2001
Location: PSM
Posts: 69,232
Originally Posted by WindowSeat123
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.
sbm12 is offline  
Old Jan 27, 2014 | 4:12 am
  #26  
 
Join Date: Oct 2013
Posts: 537
Originally Posted by sbm12
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.

Last edited by WindowSeat123; Jan 27, 2014 at 4:19 am
WindowSeat123 is offline  
Old Jan 27, 2014 | 12:00 pm
  #27  
A FlyerTalk Posting Legend
10 Countries Visited20 Countries Visited30 Countries Visited20 Years on Site
 
Join Date: Apr 2001
Location: PSM
Posts: 69,232
Originally Posted by WindowSeat123
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.
sbm12 is offline  
Old Jan 27, 2014 | 1:26 pm
  #28  
Suspended
 
Join Date: Dec 2012
Programs: A3, AA. Plasticy things! That give me, y'know, Stuff!
Posts: 6,293
Originally Posted by You want to go where?
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.
SeriouslyLost is offline  
Old Jan 27, 2014 | 4:28 pm
  #29  
Suspended
 
Join Date: Jan 2002
Location: Canada
Programs: UA*1K MM SK EBG LATAM BL AC*E50
Posts: 23,584
Originally Posted by WindowSeat123
UA is keeping F on intercontinental flights..
gotta keep the upgraders happy!

Seriously, United F is a very sad excuse for First Class.
rankourabu is offline  
Old Jan 28, 2014 | 1:28 am
  #30  
 
Join Date: Jan 2014
Posts: 23
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.
LelandWB is offline  


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2026 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.