Dear MEL Topic Readers,
We’re living in the ‘premium economy’ economy
Premium economy is an airline cabin class situated between economy and
business class, offering upgraded comfort with wider seats, extra legroom,
enhanced dining options, and priority airport services, for typically 30% to
60% more than the cost of a regular ticket. Recently, airlines have been
adding more premium economy seats for passengers who are willing to pay more
for better, but not thrice or more for business class. This move reflects the increasing
number of upper-middle-class consumers in the US economy, whose annual household
income ranges from $133,000 to $400,000. They cannot afford to buy a house
whose values soared after the pandemic and inflation, but they earn higher
wages that they can use for more comfortable travel experiences and higher-quality
groceries. Full-service carriers and retailers like United Airlines and Walmart
are generating more profits from these valued customers, while budget airlines
and discount retailers are struggling to run their businesses, including the
recently bankrupted Spirit Airlines. McDonald’s or Starbucks may be an
economical option for these upper-middle-class consumers, but they are premium food
and drink options for many Americans who are struggling to make ends meet due
to soaring commodity, gas, and energy prices.
Read the article and learn what premium economy is like in the USA.
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