Airline Passengers Embrace Premium Upgrades Despite Higher Costs

Airline travelers are increasingly opting for premium seating options, driven by a desire for comfort and enhanced service. This trend has become evident as airlines report significant boosts in revenue from premium cabins. Recent insights reveal that both Air Canada and WestJet have seen substantial year-over-year growth in their premium offerings, indicating a shift in passenger priorities.

Jane Leckie, a resident of Toronto, experienced this shift firsthand during a trip to Iceland two years ago. Faced with her second cancer diagnosis, she chose to upgrade to business class, a decision she describes as transformative. “It was the best thing ever,” Leckie shared. “Once you’ve tasted business, going back to economy is almost impossible.” Her experience underscores a growing sentiment among travelers who are willing to pay more for a more enjoyable journey.

Air Canada recently reported a five percent increase in premium cabin revenues for the second quarter of 2025 compared to the previous year. A spokesperson for WestJet confirmed similar trends, noting “double-digit year-over-year revenue growth” in their premium and business cabins. This uptick suggests a broader trend among North American travelers who are increasingly investing in comfort.

Factors Influencing Premium Upgrades

The cost of upgrading to premium seating varies widely, with business class tickets often priced at four to five times the economy fares, while premium economy seats can be approximately double the standard ticket price. Despite these costs, many passengers, like Leckie, perceive value in the enhanced travel experience that comes with premium seating.

“Airlines have made the economy ticket experience so undesirable,” Leckie commented. Concerns surrounding carry-on luggage and the cramped atmosphere in economy class have led many to seek alternatives. Leckie’s fears of lost luggage during connections exemplify why travelers are inclined to pay extra for peace of mind and added comfort.

Barry Choi, a personal finance and travel expert, noted that the preference for premium economy class has grown significantly. He describes it as a “sweet spot” for travelers who want more comfort without the exorbitant costs associated with business class fares.

Recent changes by airlines have also contributed to this trend. WestJet intends to remove reclining seats from many economy sections, further pushing passengers toward premium options. Additionally, Air Canada has made cuts to carry-on baggage allowances on certain flights, making the economy experience less appealing.

Marketing Strategies Driving Sales

Airlines are continuously seeking ways to maximize their revenues, often through innovative marketing strategies. According to Barry Prentice, director of the Transport Institute at the University of Manitoba, airlines benefit significantly from filling premium seats. They have developed gamified booking experiences, allowing customers to bid for upgrades shortly before their flights. This strategy not only boosts sales but also encourages travelers to consider premium options more frequently.

The psychological impact of social media cannot be underestimated either. Choi points out that the fear of missing out (FOMO) plays a significant role in consumer behavior. Seeing others enjoy luxurious travel experiences can motivate potential passengers to seek similar upgrades.

Travel agents, like Katherine Velan, have also noted a surge in leisure travelers opting for premium economy. She attributes this behavior to dynamic pricing strategies that sometimes make premium economy fares more affordable than standard economy tickets.

As travelers continue to prioritize experiences over material possessions, the trend towards premium seating is likely to persist. Choi suggests that many individuals are willing to allocate their disposable income towards memorable travel experiences, viewing them as investments in quality of life.

For Leckie, the decision to fly business class has reshaped her approach to travel. After surviving significant health challenges, she has embraced life’s luxuries. “The cancer journey has reminded me of the importance of time,” she said. “There is really no time like the present because tomorrow is not guaranteed.” Her perspective reflects a broader sentiment among travelers prioritizing comfort and memorable experiences in an increasingly competitive marketplace.