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United Airlines Boeing 787 Dreamliner Flight
Empty section of the economy class in a United Airlines Boeing 787 Dreamliner aircraft, on April 20, 2024 (Getty Images)
Slow coach

US airlines are still doubling down on premium seats, as the K-shaped economy takes off

There’s really not much room in economy these days.

Millie Giles

With airports across the nation still seeing delayed security wait times amid ongoing TSA chaos, some travelers might be wishing they had shelled out for a first or business class ticket to get into the “Priority” lane.

And it seems America’s biggest airlines are also betting that passengers are now more willing to upgrade: a new report from The Wall Street Journal, published Sunday, details how airlines have shrunk traditional economy cabins over the last decade to make room for a growing number of premium offerings.

Indeed, according to aviation data from Visual Approach Analytics cited in the report, the number of scheduled first and business class seats on domestic flights has expanded by 27% since January 2020 — almost 3x greater than the 10% growth seen for scheduled economy seats.

That’s not even accounting for premium economy, an intervening class that became a standard option for many major airlines in the 2010s, which, the WSJ wrote, can be “priced at least twice as high as regular economy seats and only take up slightly more room on the plane.”

premium seats
Sherwood News

Looking at four of the biggest air carriers in the US — Delta Air Lines, United Airlines, American Airlines, and Alaska Airlines — all have increased their respective shares of premium seats since 2016, with premium offerings now making up 12% of their cabins on average in 2026.

Business end

Many airlines are rolling out redesigned cabins to make planes “financially efficient,” adding room for more expensive tiers by cutting into cheaper sections. The trend speaks to the emergence of Americas K-shaped economy, in which wealthier consumers continue to splurge as lower-income spenders cut back.

For example, United’s new Dreamliner jet layout includes 16 more business class seats, 14 more Premium Plus seats... and 65 fewer seats in the economy section. Delta has already found success squeezing profits from the top, with its premium ticket sales growing more than 7% last year, while main cabin ticket sales fell 5%.

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GM has reportedly rehired more than 100 former Cruise employees, 18 months after shuttering the robotaxi unit

GM has rehired more than 100 employees it let go early last year when it shuttered Cruise, its former robotaxi business, according to reporting by The Information.

The hiring spree, which also includes employees from Nvidia and Uber, is geared toward ramping up GM’s plans for personal-use self-driving vehicles and not robotaxis. The former had been the focus of Cruise, prior to GM shuttering it in 2024.

Reporting last fall revealed that GM was attempting to rehire some former Cruise employees, but the scope of that effort wasn’t clear. More than 1,000 employees were laid off when the automaker scrapped Cruise, which it invested $10 billion into.

Google’s Waymo, Cruise’s former chief rival, is now worth $126 billion after a $16 billion funding round earlier this year. The company says it’s serving 500,000 paid robotaxi rides per week in the US.

Reporting last fall revealed that GM was attempting to rehire some former Cruise employees, but the scope of that effort wasn’t clear. More than 1,000 employees were laid off when the automaker scrapped Cruise, which it invested $10 billion into.

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