There’s a lot to unpack from United Airlines’ 2025 Q2 earnings call, but one conversation caught my interest that suggests that we might see much larger premium economy cabins on future United aricraft deliveries.
United Airlines Sees Premium Economy Cabin As Profit Center, Considers Expansion
Catherine O’Brien, an analyst for Goldman Sachs, asked United’s Chief Commercial Officer and Executive Vice President Andrew Nocella about whether premium cabins would expand.
“You noted this year has given you more confidence in premium products and you’ll look to increase premium more going forward. I’m assuming that means increasing the percentage of premium seats per departure, but correct me if I’m wrong. I guess just any thoughts on where that percentage could go over the next five to ten years? And within that, is there any segment in the premium cabins between Economy Plus, international Premium Plus or Polaris that would be – the bulk of that upsizing or it’s really equal across the various premium cabins?”
Nocella’s answer understandably focused on the delivery of new 787-9 aircraft with an expanded Polaris business class cabin, but also focused on Premium Plus, United’s premium economy cabin.
“It’s a really good question. I won’t give every detail. We’ll save that for a more detailed type structured meeting. But we announced our United Elevated interior onboard, the 787-9 in Brooklyn just a few weeks ago, and that particular aircraft will now have 99 premium seats on it, which is Polaris plus Premium Plus. Not every aircraft United flies by the way, that we take delivery in the future will have that same 99 seats.
“But that’s a good reflection of an aircraft that we already said we will be flying to Singapore. We think that’s the right aircraft for Singapore and many other markets at United, where we have this really high level of premium demand. Probably the biggest expansion though, that I think is an opportunity is we undersized the Premium Plus cabin, the cabin between main cabin and Polaris on our wide-body jets. And that’s the cabin, I think, that’s generating very good returns and the one that we’ll probably lean more into going forward.
“But we’ll leave all the details for a later date. But Premium Plus is, I think, a really very exciting opportunity as a midrange product between the front of the aircraft and the back. And then last but least, the gauge benefit that Mike talked about, as we bring on these MAX 9s and A321neos, we definitely bring on many more premium seats than the aircraft we ultimately replace the A319 or the A320. And so our premium mix just shifts as we upgauge the fleet and retire older ones and bring in these new ones that are just performing really well for us.”
(bolding mine)
United’s incoming 787-9s will feature:
- 8 United Polaris Studio suites (1-2-1 layout)
- 56 United Polaris business class suites (1-2-1 layout)
- 35 United Premium Plus seats (2-3-2 layout)
- 33 United Economy Plus seats (3-3-3 layout)
- 90 United Economy seats (3-3-3 layout)
Current 787-9s have 48 Polaris seats and 21 seats in Premium Plus.
I don’t personally find Premium Plus to be the “goldilocks” between economy class and business class. The seat, while far more comfortable than economy class, is still not ideal for sleeping. That said, it’s a solid upgrade over economy class and when priced, it represents a middle ground for those whose travel budget does not include Polaris class.
One thing I’ve noticed is that United routinely oversells Premium Plus, then gives select lucky passengers operational upgrades to business class if everyone checks in. Adding capacity to premium economy, considering its rather constrained footprint, likely represents an ideal optimization of cost per square inch onboard.
Bottom line: we can expect larger premium economy cabins going forward.
CONCLUSION
When I flew Qantas in premium economy from Los Angeles to Sydney, I was a little skeptical of how comfortable a cabin would be with 60 premium economy seats. But the service flow was excellent and I was so thankful to fly that over economy class.
As people opt for “experiences over objects,” I do believe more folks will be willing to pay for a bit more room onboard. I’d expect much larger premium economy cabins on all future United widebody aircraft.
> Read More: United Airlines Premium Plus Review (SFO-FRA)
Increase the pitch to 43 inches and make the seats a touch wider
def increase the pitch. not great to be on a window side and need to get out when seats are reclined.
How comfortable is it? Is it like the typical domestic first class as far as recline and comfort? (I have only experienced lie flat business class, economy class and economy class with slightly more leg room).
Remember around 2003 when there was angled flat where you could slide down under certain circumstances?
Yes, they and AA have undersized premium economy. It is reportedly the highest margin cabin for US airlines. It takes up far less space than business class but generates proportionately more revenue than regular or even extra legroom economy
DL has long had a closer ratio between the number of business class and premium economy seats and on their latest A350-900s, they are the same and are also expected to be the same -and higher – on the 35Ks.
and upgrades on DL to business class are much harder to come by which says the people that are seated up there are much more likely to have paid for it
Why is DL being brought into this when Matthew doesn’t even mentio tbem?
because UA gets data about the market from its competitors which happens to include DL and their own operations.
DL has consistently had more premium economy seats than its competitors esp. on longer haul aircraft. Business class is out of reach for many customers but, as many note, premium economy of today isn’t that different from business class of a couple decades ago. And premium economy delivers great margins while using far less real estate per seat than business class
Nah, it seems its more about tou wanking off to DL amy chamce you can. DL really has nothing to do with this.
UA also should have DECREASED their business class cabin size, if not outright eliminated it for F (or Polaris plus if they so insist on keeping “business” in the name)
Go with 12 J/F, 63O on the 777,
12J/F 54O on the 787
10 J/F, 54O on the 767
and get rid of the de facto CPUs due to oversales. Something is wrong when you can only get a CPU on longhaul international
Good thing for them that you don’t make the decisions. They’d likely loose me as a J pax.
OPM J pax don’t pay the bills any more. You’d be free to fly another airline, whereas I would be meeting both premium leisure and OPM demand
Matt,
Just a theory here. Do you recall 20 or so years ago when United wide bodies had a handful, maybe 8 flat bed first seats, 50 60 or so recliners, and the rest coach?
If premium economy starts to replace polaris seats, are they slowly drifing back to pretty much a similar blend of seating, but with more polaris flat beds and a premium economy which is not quite as comfortable as the recliner type business seats were?
As for me, what would bug me most about economy on a long haul is competing with someone for an arm rest. So “economy plus” is rather useless, but premium economy satisfies that need. In fact, I recall that domestic business on South African 737’s at some point was 2-3, with a smidge of extra leg room, so like premium economy – that was well enough to satisfy me even if I know it was not luxurious.
During the Jet Age (so DC-3’s don’t count), there was First Class (like premium economy) and Coach (like economy with extra leg room, similar to Delta Comfort +).
Later there was angled flat seats (angled as in sliding off the bed). Now doors are getting more common. Eventually, it might be business class with doors (better than the original First Class), premium economy (like the old first class), and economy (a little more crowded than the old coach). Of course, there will be exceptions, like Etihad apartments.
Yeah, those angled flat seats were dreadful – one would slide down and hafta adjust upwards every 30 minutes praise be to Jesus they were not smooth leather or I wouldda been forever at their base. I preferred non-flat recliners which cradled me a bit to avoid that issue.
I suppose that as the well heeled amongst the baby boom continues to get older there will be more financial bandwidth for flat beds, but I anticipate that airlines will equally find more and more tolerance for the premium economy price point.
Just flew United TATL in Premium Plus via B767-400. Very nice 2+2+2 arrangement. All 24 seats were full east bound and only 3 empty on return. Reminded me of what 1st class used to be in the 80’s & 90″s with the added perk of an IFE. The food was fine, nothing outstanding. However, the FAs refused to let us use the restrooms just forward of Premium Plus east bound. Yet, on the return, no issue.
Those in Economy & Economy Plus (2+3+2) looked miserable in both directions. Reminded me of my back pack & flip flop days of travel.
NOTE: the pilots manipulate the Occupied sign to the forward restrooms. Noted they come one after another, each lifting a small metal panel on the door and push some type of slide to indicate the restroom is Occupied when they leave the restroom. The next pilot will again manipulate the slide to gain entrance. Appears the last pilot will move the indicator to Empty when they finish their rotation.
Saw this both east and west bound and on prior UA B767 flights.
Its amazing how yanking one single seat can make a huge difference – as I noted above, competing for an arm rest is what makes economy ghetto for me.
“…plus c’est la même chose”:
25 yrs ago in UA to Australia –
We had First Class with Lie Flats; business Class in between with angled seats and economy.
Now Business has lie flats “Polaris” Premium Economy is angled seats with 38 in pitch and regular economy
What has happened is that Airlines realized businesses will not pay for F class ttravel.
So they now call what was once F class as Business
What used to be Business – is now sold to the consumer (and to cost conscious businesses) as Premium Economy in long haul flights and the porr soul in economy travels even worse
There are very Few TRUE F class with 4 cabin seating – EK for one and even there they realize people will pay to get out of economy.
Business won’t pay for J anymore either.
Which is why F needs to be brought back, as millionaires and higher WILL pay for F for leisure travel, and J needs to be nuked into oblivion
Don’t “consider” adding more Premium Economy. Do it. Starting now.
Make regular economy so unbearable that more and more people will pay the upgrade. Then expand premium enough that we back to 1983-level expectations of comfort in economy.