Airline Revenue

Airlines Abandon Middle Tier as Premium and Ultra-Budget Classes Dominate Market

Across the airline industry, it seems that the traditional middle tier of commercial air travel is on its way to the history books. It has always been common to see legacy carriers and low-cost airlines alike depend on a standardized main cabin product to generate steady baseline revenue. Today, that undifferentiated middle is rapidly disappearing as commercial aviation splits into two profitable extremes: high-yield premium cabins at one end and unbundled ultra-budget fares at the other.