
536. Is Your Plane Ticket Too Expensive — or Too Cheap?
Freakonomics Radio
00:00
Premium Passengers Propel Profitability
Airlines heavily rely on revenue generated from premium cabins, which significantly outweighs that from main cabins. Premium or business-class tickets essentially subsidize the cost of coach tickets, allowing airlines to offer lower fares in the main cabin. In fact, over 60% of total revenues originate from non-main cabin components, highlighting the critical financial impact of premium seating, loyalty programs, and additional services like cargo, while the main cabin contributes only about 40% to the overall revenue mix.
Transcript
Play full episode