The Economics of Airline Class

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Sound by Graham Haerther

Select visuals courtesy British Airways
Select visuals courtesy Etihad Airways
Select visuals courtesy Virgin Galactic

“Poldoro” by Milton Arias
“Summer Movement 1” by John Harrison with the Wichita State University Chamber Players

Big thanks to Patreon supporters: Rob Harvey, Venkata Kaushik Nunna, Josh Berger, Paul Jihoon Choi, Huang MingLei, Dylan Benson, Maximillian van Kasbergen, Victor Zimmer, William Chappell, Eyal Matsliah, Sihien,Joseph Bull, Marcelo Alves Vieira, Jonah Paarman, maco2035, Hank Green, Plinio Correa, Connor J Smith, Brady Bellini

[Wendoverproductions]

Sorry for doubling up on aviation videos! Normally I wouldn’t do two videos of similar topics back-to-back but the video I was going to do just ended up not being interesting enough so I scrapped the script. I didn’t have time at that point to do a research-intensive video so I decided to do this topic that I already knew a good bit about.

Also I know this is a pretty loose interpretation of economics, but hey, I liked the title.

Also, one clarification on something I realized might be confusing during editing: airlines absolutely had first class in the 60s and 70s. It just wasn’t anything like the long-haul first class’ you see today. It was pretty much like domestic US first class today. The impact of the Concorde was the perceived competition it created for the highest-class of traveller. Some airlines decided to close their first class cabins and not compete while others improved their cabins in order to compete. Lie-flat seats or even angle-flat seats really didn’t become ubiquitous until the last 10-15 years with the demise of the Concorde.

Also, first.

[simonvavra]

Economy class in planes is the most expensive way to feel poor.

[monica-ioanadiac]

"Everyone in economy, in the end, is just there to fill the plane."
....
...
...
...
I've been called worse.

[blacksnow]

Once upon a time, I was a lost Air Force Airman in an airport. I was in uniform fresh out of basic training...I asked this guy who was wearing a suit waiting for the same flight if I was on the right flight. He said yes, and then he took my ticket and came back with a 1st class ticket. They were offering me wine in the air and I was only 19. lol I will never forget that mans kindness...

[klipk]

Can't even imagine spending 2k+ on a plane ticket, didn't realise there were so many rich people out there

[xoDemie]

I was upgraded to first class when I flew for the first time alone at 16. The woman checking my boarding pass changed my seat number and I didn't realize until the flight attendant pointed me towards the front of the plane. It was an amazing experience and the flight time was over 8 hours.

[hadwinying]

no, we are not there to fill the flights.
we are there just to make the plane balance

[edenvalehome]

Concorde may have failed economically, but from an engineering view it was unrivalled, even today.

[decalcomanie]

As a customer service at a travel agency, I can never understand when people just go "ok" when I confirm with them that the cost of class upgrade is like a thousand dollars

[age_of_reason]

I fly the plane. I call it captain class.

[treyforest]

“In the beginning of commercial aviation, there weren’t really any classes...”

*Karl Marx has joined the chat.*

[davimurph]

The observation about direct flights being more expensive is really interesting. Before they got married, my cousin's husband lived in London. When he went on holiday to the USA with her family, he realised that his flights from London were far more expensive than their flights from Belfast, even though they would be crossing the Atlantic on the same plane, and their tickets included additional flights across the Irish Sea. In the end, he found it was significantly cheaper to fly from London to Belfast the day before and then fly from Belfast with his girlfriend and her family.

[hitenmirajkar]

Remember, even if you can't fly first class, your destination will remain the same.

[barakatq]

That Sure hurts,
"Everyone in economy is just there to fill the plane!"

[Talleyhoooo]

Spirit Airlines: "Bet you we can make a class below coach."

[shanedgington]

The brilliance of these videos....visual simplicity, easy to digest for most, relatively short. Most importantly, they give the average person months of cool personal research learning about airports, the airline industry, business philosophy, geography.... well done.

[taxfraudpro]

"You can't make half a million dollars on a 6 hour flight across the Atlantic"

Middle eastern airlines: well well well

[ilhamsuhendi]

even with economy seat, I'm still feeling the luxury experience of flight

[jkramer]

Many of the seat in all of the premium cabins are comped to frequent flyers and road warriors. Once I attained top tier stats with my preferred carrier, I don't remember a time where I wasn't comped an upgrade. So, a lot of those "revenue generating" seats are sold at the price of the lower tier seats. The math still works, but the margins are significantly diluted.

[t]

Very interesting! Would love to see a follow-up on the side hustles of airlines: frequent flyer programs, extra fees for basic services, airport lounge clubs, presale of miles to credit card companies, co-branded credit cards, and fuel hedging.