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One of the expected trends in 2026 is that premium economy will to continue to drive mainline airline growth. This is expected to continue until the end of the decade. Even so, low cost airlines are expected to drive the airline industry as a whole. One of the biggest factors influencing the growth of the industry is capacity, and to meet increased capacity, airlines need to have more aircraft.
A lack of aircraft is limiting low-cost carriers from expanding and limiting mainline carriers from expanding their premium economy class. At the same time, mainline carriers have to retrofit their legacy aircraft to accommodate premium economy. New widebody aircraft are now typically delivered with premium economy seats. Here are some reasons why premium economy class is one of the primary engines of growth in 2026.
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Deliveries In 2026
Around 1,420 new deliveries expected
Many of the world’s large low-cost carriers have large outstanding orders, including Qatar Airways, Emirates, Delta Air Lines, Lufthansa, and others. Low-cost airline examples that stand out include India’s IndiGo, Europe’s Ryanair and easyJet, Malaysia’s AirAsia, and various others. In 2025, Airbus delivered a total of 793 commercial aircraft, and in 2026, it wants to increase that to around 870 jets. Time will tell if Airbus is able to achieve this target after a rather sluggish start to the year.
Boeing closed out 2025 delivering a total of 600 commercial aircraft, and it plans to deliver over 650 in 2026. The bulk of these Airbus and Boeing deliveries are the popular Airbus A320 and Boeing 737 narrowbody models that low-cost airlines overwhelmingly use. If the aircraft can be delivered in planned numbers, then it will more than make up for retirements, allowing the fleet to grow.
Meanwhile, mainline carriers are also looking to receive many more aircraft. Boeing is seeking to ramp up its Boeing 787 Dreamliner deliveries for 2026 to between 84 and 96. Airbus is likewise seeking to ramp up its A350 deliveries to nine per month, although the start of the year has been sluggish. Most premium economy seats are found on widebody aircraft.
33% more revenue generation than economy
Premium economy is extremely popular for airlines as it has become airlines’ most efficient revenue generator. Premium economy revenues have now even surpassed economy class revenues for Delta Air Lines. Premium offers much higher yields than economy, but also takes up much less space than business class.
Previously, airlines worried that premium economy would cannibalize business class rather than encourage economy-class passengers to upgrade, but that hasn’t happened on a major level, and business class is holding strong. By contrast, business class has cannibalized first class, with the class not disappearing from North America.
Lufthansa has termed premium economy a “money-generating machine,” claiming it generates 33% more revenue per square foot than economy. As it takes up less space than business, it managed to generate around 6% more revenue than business. It is also easier to sell premium economy seats than business class seats. In other words, not only is it the class passengers want, it is the class airlines have decided they also want to sell.
Why Don’t Many US Airlines Offer Premium Economy On Every Aircraft?
Discover why airlines don’t want to install premium economy on short-haul aircraft.
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Changing Attitudes
Approx. 50% of first class seats are now Emirates
While business class and mainline economy class may be reasonably stable, the changing attitudes in flying can be seen in the collapse of first class, the growth of premium economy, and the growth of low-cost airlines. First class hails from a time when flying was prestigious and something reserved for the wealthy. People would dress up to fly. The experience was perhaps a little similar to the glamor of first class in Titanic.
But now everyone flies, and the prestige has largely gone. First class is seen as a waste of money, while business class has improved and further pressured first class. This has led to the collapse of first class around the world. American Airlines has become the final US-based carrier to scrap its first-class offering. While the mainline European carriers like British Airways, Lufthansa, and others are keeping the class, they don’t have many seats in their aircraft.
Around half of the world’s first class seats are now offered just by Emirates, which has first class in all its Boeing 777 and Airbus A380 aircraft. At the same time, flying has become cheap to the point that a Ryanair fare in Europe can easily be cheaper than the cost of a taxi ride to the airport. But these low-cost fares have been achieved in part by squeezing more passengers in and making flying uncomfortable. This has also created a niche for premium economy, discussed below.
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Premium Economy, The Sweet Spot
Typically 38-42 inches seat pitch
Premium economy has become the sweet spot for passengers who just want to have a comfortable and affordable flight. With prestige largely gone, even business class can be seen as excessive. But those passengers typically don’t want to downgrade to economy. Economy class has also tended to become more squishy and less comfortable over the years.
A good example of airlines squeezing economy is that the Boeing 777 was originally designed to carry nine passengers abreast in economy comfortably, but could fit ten. At first, the industry standard was to fit nine-abreast, but now almost all airlines have retrofitted them ten-abreast in economy. Japan Airlines, Korean Air, and Singapore Airlines are three examples that still configure them nine-abreast.
Some airlines also had their early Boeing 787s configured eight-abreast, instead of nine-abreast. Today, Japan Airlines is the only airline to still have Boeing 787s configured eight-abreast in economy. Meanwhile, Airbus’s new A350 production standard has provided another four inches in interior cabin space. This tempts airlines to squish A350s ten-abreast, up from the industry standard nine. Philippine Airlines has become the first flag carrier to do this.
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A Comfy Ride
Average 18.5 to 20.0 inches wide
Premium economy is objectively a superior product compared with economy, allowing passengers to arrive refreshed without having to break the bank. Compared with economy, premium typically provides 5-7 inches more legroom and a greater seat width. The seat width is typically 18.5–20 inches. More important than seat width is that passengers are spaced out with A350s and 777s typically seated eight-abreast.
While premium economy seats typically don’t lie flat like business, they do offer increased seat recline. They come with better amenities, better dining options, and increased baggage allowance. Other benefits generally include priority check-in and boarding, and sometimes lounge access.
Premium economy fares generally have 6-way adjustable headrests, leg rests, dedicated footrests, and more. They are located further to the front of the aircraft, meaning the cabin is quieter as they are before the engines. Delta says, “Delta Premium Select passengers receive Sky Priority service, which includes accelerated check-in, security and baggage service. Once it’s time to board, you’re among the first invited on the plane.”
The Airlines With The World’s Newest Premium Economy Seats In 2026
A few new airlines will have premium economy offerings in 2026, while most are continuing to roll out expanded and/or refreshed seats.
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Still Rolling Out
Emirates is retrofitting 219 aircraft
As already suggested, premium economy is still rolling out around the world. Airlines, like 
Emirates and Lufthansa, are still in the process of retrofitting their aircraft with premium economy, boosting premium economy capacity. After a hiatus, Turkish Airlines is relaunching its premium economy class on long-haul flights in 2026. This effectively reverses its decision to scrap its “Comfort Class” around 12 years ago.
Some airlines are introducing (or reintroducing) premium economy cabins for the first time in 2026. Hawaiian Airlines is making the initial changes to introduce premium economy to its A330-200s, although the full rollout is expected to start in 2028. TAP Air Portugal is launching premium economy (called Economy Prime) for the first time in 2026 on its A330s and A321LRs.
While airlines are receiving their new aircraft with premium economy seats, they need to retrofit their aircraft to include premium economy. Emirates says, “Emirates is undertaking one of aviation’s most ambitious retrofit programmes, a $5 billion investment to completely refurbish 219 aircraft, including 110 Airbus A380s and 109 Boeing 777s.” This has been ongoing over a period of years and is in full swing during 2026.
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More Business Travelers In Premium
Premium typically costs 40-60% of a business ticket
While airlines may have been successful in introducing a new class without compromising their profitable business class, it still has an impact. Airlines are keen to show premium economy as an upgrade option from economy, not a downgrade option from business. Still, tighter corporate travel policies have pushed business travelers out of business class and into premium. It is seen as good enough.
This is more consequential in periods when corporate travel budgets come under pressure. In other words, premium economy is becoming a type of business class in the original meaning of the name. In January 2026, Reuters reported, “American Airlines forecast 2026 profit above analysts’ expectations on Tuesday, citing stronger demand for premium seats, a rebound in corporate travel and higher loyalty revenue...”
The article says that Delta and United have also pointed to premium and business travelers as their main profit engine. These airlines are expecting premium seating to expand faster than non-premium seats for the rest of the decade. American is looking to expand its premium seating to close the earnings gap with Delta and United. Premium economy cabins are focused on leisure travelers, but there has been a significant push by companies to seat their employees in premium economy instead of full business, particularly since the pandemic.
