Skift Take
Many airlines sell premium amenities to customers in coach. But is it worth it? Yes, these are high-margin items, but airlines don't sell that many of them. Most coach customers want only the basics and don't want to pay extra for anything.
The Skift Airline Innovation Report is our weekly newsletter on the business of airline innovation. We look closely at the technological, financial, and design trends at airlines and airports.
Brian Sumers writes and curates the newsletter, and we send it on Wednesdays. You can find previous issues of the newsletter here.
With long-haul legacy airlines under attack from discounters, most established carriers can't improve the experience for travelers paying a few hundred dollars to fly between Europe and New York without threatening their already meager margins.
They have a choice: They can retain the status quo — sad-looking food along with few amenities — or they can charge for what passengers may really want. Perhaps they can let customers buy-up to a premium meal. Or they can sell business class-style amenities, such as pillows, amenity kits, and even pajamas.
Some airlines are trying the a la carte strategy. One is Air France, which sells premium meals to roughly two to three percent of coach customers. Another is Etihad Airways, which hawks just about every amenity, including access to the airline's ultra-exclusive lounge in Abu Dhabi (spa treatment not included) that its first class customers receive.
Not everyone is sure this is sound strategy. Yes, airlines can make incremental revenue from selling wh
