News and Research

First-Class Seats Drive Airline Profits. It Wasn’t Always This Way

April 10, 2026

New York Times

Historically, tickets were often sold by travel agencies or websites like Expedia, where customers typically shopped on price alone. That made it difficult for airlines to persuade customers to spend more. So carriers spent years increasing direct sales.

By controlling the booking process on their own websites, airlines could offer fares that included perks like free checked bags or priority boarding. Such bundles have been a huge success, said Jay Sorensen, who runs IdeaWorksCompany, a consulting firm that works for airlines and other aviation businesses.

“Direct online selling enabled airlines to be far more creative than they could be in the past in how they present their products,” Mr. Sorensen said.

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