A Quiet Flight and a Curious Decision: Why Airlines Don’t Always Fill First Class

A Quiet Flight and a Curious Decision: Why Airlines Don’t Always Fill First Class

Overnight, I traveled from Melbourne to Singapore on a flight that was as quiet as it was thought-provoking. Business Class, where I was seated, had just three passengers—including myself. First Class had only one. Despite this, the airline chose not to upgrade anyone to First Class, even though two of the three Business Class passengers were at the highest status tier for the airline group.

This decision, on the surface, might seem counterintuitive. Wouldn’t upgrading passengers enhance their experience, foster goodwill, or simply make better use of the space? The reality is that such decisions are guided by well-considered business strategies and operational factors. Here’s why airlines often choose not to fill First Class, even under these circumstances.


1. Preserving the Exclusivity of First Class

First Class is more than just a seat—it’s the pinnacle of an airline’s brand and service offering. It’s meticulously curated to justify a significant premium, and its exclusivity is part of the appeal. Moving passengers into First Class for free, even top-tier loyalty members, risks devaluing this product. If upgrades became common, paying customers might question the value of purchasing First Class outright.

This exclusivity helps maintain the brand's prestige and allure.

Reference: Forbes: The Importance of Exclusivity in First Class Travel


2. Strategic Loyalty Program Management

Airlines reward loyalty strategically. For passengers at the highest status tier, benefits such as upgrades are usually provided based on availability and operational considerations. However, random or free upgrades—especially to First Class—could create inconsistencies in how loyalty rewards are perceived and undermine the carefully structured benefits of the loyalty program.

Even for top-tier passengers, upgrades are typically planned and executed with precision to ensure fairness across the network.

Reference: Skift: The Economics of Airline Loyalty Programs


3. Operational Constraints

Upgrading passengers isn’t as straightforward as it seems. Moving someone to First Class requires adjustments to the seating manifest, meal services (often pre-ordered and specific to the cabin), and cabin crew workflows. On flights with limited passengers, the operational cost and complexity of making these changes might outweigh the perceived benefits of upgrading.

Reference: IATA: Cabin Management Challenges


4. Managing Passenger Expectations

Offering free upgrades to any available First Class seat can set a precedent that creates unrealistic expectations. Passengers who receive an upgrade might expect it on future flights, leading to dissatisfaction when it doesn’t happen. By adhering to consistent policies, airlines aim to manage expectations and provide a reliable experience across their network.

Reference: Harvard Business Review: Managing Customer Expectations


5. Potential Post-Pandemic Protocols

The pandemic has reshaped cabin management practices, with airlines focusing on minimizing unnecessary movement within cabins. Such protocols could play a role in decisions to keep passengers in their assigned cabins, even when premium seats are unoccupied.

Reference: Airline Trends Post-COVID-19


A Personal Reflection

As one of only three passengers in Business Class, and surrounded by the quiet luxury of an underbooked premium cabin, I reflected on the airline's decision. While it might have seemed like a missed opportunity to enhance the experience for their top-tier members, the decision aligns with broader business strategies. Preserving value, managing loyalty, and ensuring operational integrity are critical in an industry where perception and consistency are everything.


Closing Thoughts

The decision not to upgrade isn’t about withholding generosity; it’s about maintaining the integrity of the product, rewarding loyalty fairly, and upholding operational efficiency. Even for passengers at the highest loyalty tier, the airline must balance immediate benefits against long-term sustainability.

What are your thoughts? Have you experienced a similar situation while traveling? Let’s discuss how airlines strike this balance in the comments below! Personally, at the time I was disappointed, I would have loved to experience sleep, in the clouds, in First Class but on reflection, I understand the reasons and although I am disappointed, I am not upset!

First and Business class exclusivity is further preserved by how difficult it is to find award redemptions with credit card points. Yet awards are possible and quite frankly, leaves the consumer wanting more. Awards are almost equivalent to waving a carrot on the next socio-economic class that will be able to comfortably afford first/business. The model is highly effective.

Dinesh Vyas

Civil Engineering Professional

2 个月

I agree. Dinesh R. VYAS.

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Michael Belda

Project and Portfolio Manager, Service Planning and Delivery Lead

3 个月

Justin Stark, to expand on your points above, it is economically unviable - the marginal benefit for the airline would not equal or be greater than the opportunity cost. The marginal direct cost is less than the indirect costs and opportunity cost of not selling that seat to a paying customer. Granting a free upgrade reduces the contribution margin for the first-class cabin and inflates the load factor vis-à-vis airline policy decision. The average revenue per seat metric and revenue per available seat kilometre (RASK) is pushed lower, making it harder to justify operating the first-class cabin and distorts demand signals, in turn making it harder to set optimal pricing. If a passenger were upgraded mid-flight, it’s prudent to consider what would happen to their baggage and the economic impact to the baggage handling system and service.

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Pasquale Gizzi

Lead, BTS Partnerships, UK/Ireland & Nordics

3 个月

Set an example to your Company and colleagues, and fly in economy class.

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Naresh Vyas

Founder | CTO | Advisor | Board Member | Financial Services | Venture Building | FCAT Fellow

3 个月

Most American airlines would fill up all of first and business and leave empty seats in economy (often because flights are oversold and need to backfill). Several airlines started auctioning first and business class seats, thinking its worth getting something than nothing.

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