First class cabins on Emirates airline. Picture: BLOOMBERG
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Airlines are reinvigorating first class as deep-pocketed customers embrace travel again, taking luxury to new heights up in the sky. 

First-class cabins are increasingly resembling mini hotel rooms, with sofas, double beds, televisions, desks, wardrobes, minibars and in some cases, walk-in showers. The more creative, the better. You can even book a chef. 

The investment is happening despite slowing economic growth and a cost-of-living squeeze. Airlines are betting that enough people are willing to splurge on flying in style after being grounded by Covid-19 and denied the chance to travel.

“Leisure travellers in particular continue to book flights in business or even first class,” Deutsche Lufthansa CEO Carsten Spohr said during an earnings call in March. “This year is the first year all my team tell me, ‘Spohr, we need to grow first class’,” he told investors last week.

The German airline is investing $2.7bn over two years to revamp its long-haul aircraft under a programme it has named Lufthansa Allegris. Qantas Airways is showcasing a plush new first class, a realm that is typically beyond the reach of ordinary passengers — the closest most people get is a stolen glance as they shuffle conga-line style to the aircraft’s exit doors. 

Why now?

The International Air Transport Association (Iata) estimates that airlines suffered about $200bn in losses over the past three years as Covid-19 wreaked unprecedented havoc. They desperately need to claw some of that back, and first class has become a potential gold mine. Premium travel, which includes business class, is back to 86% of 2019 levels, according to Iata, while total air travel demand, including economy class, is at 81%.

Even with first-class fares going for more than 10 times as much as standard economy seats, demand is there — either for bookings with cash or the rare opportunity to use up miles accumulated on credit cards during the pandemic. 

“There is still a large amount of excess savings,” said David Mann, chief Asia economist at Mastercard. “The willingness and the ability to spend doesn’t look like it’s going away soon, which most likely explains why airlines are making announcements.”

Cathay Pacific Airways is also planning an upgrade of first class. There is already strong demand for its current top-of-the-range seats, which are available on one of its Hong Kong-London services. The cabins include “one of the widest fully flat beds in the sky”, various soft pillows and pillow mist, according to the airline’s website. 

Of course, travellers in first class also get access to the best airport lounges. And pyjamas. 

What else is on offer?

Qantas and Lufthansa have unveiled new-look first-class cabins that can be fully closed off with doors, joining trailblazers Singapore Airlines, Emirates and Etihad Airways in converting seats into suites. 

The seats in Lufthansa’s new rooms can be heated or cooled, while there are wardrobes for extra storage. That is quite the transformation from what was previously an open-plan arrangement with little privacy. At its Frankfurt hub, a personal assistant is on hand to greet first-class customers and take care of all “travel formalities swiftly and discreetly”, the German airline says. 

“Pressure to keep up with the times may be sufficient justification for such a large investment,” Daniel Baron, MD of Tokyo-based Lift Aero Design, said of airlines ploughing money into cabin makeovers.   

Splashing out 

A return Sydney-Los Angeles flight in Qantas first class costs almost $18,000, while Frankfurt-Tokyo on Lufthansa is about $15,000. That is still significantly less than what some ultrawealthy travellers fork out for private jets, a segment that experienced a boost during the pandemic as people looked to avoid crowds and virus-related restrictions. 

“The aviation industry is responding to that demand,” said Melanie Lieberman, a managing editor at The Points Guy travel website. First class is “a very safe, reliable sector” where people are willing to pay up “for space, privacy and exclusivity, even during difficult economic downturns”. 

More luxury 

Lufthansa’s newest Boeing 787s and Airbus A350s will have two single suites in first class as well as a double called Suite Plus that can fit a few people. Those have ceiling-high walls and a closable door and will be introduced in 2024. 

The suite “conveys the feeling of privacy and individuality similar to a hotel room, only at an altitude of 11km,” senior Lufthansa executive Jens Ritter said at the product’s launch in Berlin in February. 

As part of the fleet revamp, Lufthansa business class will have suites with chest-high walls and sliding doors. 

Qantas, meanwhile, has space for 14 passengers in first class on its A380 superjumbos. Its newer, smaller A350s can fit six. Individual cabins now feature armchairs and a 212cm flat bed with memory foam mattress, as well as cotton throws, a duvet and pillow menu. 

The cabins are designed to seat two people in case travellers want to eat together. 

These exclusive zones occupy much space on aircraft. A standard first-class suite on A380s flown by Singapore Air, which tops the Skytrax industry rankings for the segment, takes up about 4.6m2, almost a third of the size of an average Hong Kong apartment. 

Coming next

Lufthansa and Qantas are among the first airlines to release details about their plans for first class in smaller, long-haul jets, which will potentially be used on a greater number of routes. 

Others entering the fray are Air France and Japan Airlines, with new cabins as soon as this northern hemisphere winter. The French airline says it will offer the “longest suite in the market”, with five windows, a seat, bed and sofa. Qatar Airways is due to revamp first class on its delayed Boeing 777-9s.

Bloomberg News
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