[Post 479] Why Airline Perks Are So Disappointing | CNBC Marathon

Summary

CNBC Marathon explores the business of airline amenities and how airlines are working to improve them. 

Over the past couple of years, airlines and credit card companies like American, United, Chase and Capital One are investing millions into expanding their airport lounge networks for customers. However, lounges have become so popular that some face overcrowding, and companies like Delta are making it harder to get airline status.

Airlines have been spending big to add more space and comfort to seats on board planes. According to AeroDynamic advisory, airplane seats were a $2.6 billion dollar market globally in 2022, almost half of $6.2 aircraft interiors market. U.S. airlines like American, Delta and United have been adding more premium seats to their fleets. Delta estimates its premium revenue will be 35% of total revenue this year compared to 24% in 2014.

Food service on domestic airlines has drastically changed in recent years. Nearly 3 million passengers fly every day in the U.S. Post pandemic, airlines have seen an increase in passengers buying up to premium seats - putting pressure on airlines to offer better food options and more of them.

Airplane Wi-Fi has been around for decades but its reliability and speeds can vary widely depending on the airline, the route and the type and age of the aircraft. American Airlines, United and other U.S. airlines have been updating their fleets to provide better Wi-Fi. Delta has spent over $1 billion retrofitting its planes to bring free wifi to its customers.