Airline Tickets: The Cost of First Class
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We all know that the economy is in bad shape. Families are struggling to pay their bills each month. Unemployment has been above 9 percent for more than a year. Housing values are falling, and record numbers of people are losing their homes or declaring bankruptcy.
Even credit scores are falling: A new study by credit score provider FICO found that 25 percent of consumers with credit scores had scores under 600. For those who don’t understand credit scores, a FICO score of 720 or higher is considered “good.” A score under “600?” That’s considered terrible.
So with all this financial turmoil, consumers have to cut their costs wherever they can. And that could mean trouble for airlines.
Airlines make big money from consumers who elect to fly first class. But as the cost of first-class tickets continues to rise, a growing number of passengers are electing to pass on the gourmet nuts and free glass of wine to fly the far more affordable, if less luxurious, coach.
Soaring First-Class Fares
When times get tough, consumers cut the luxuries first. It’s why people always eliminate their cable TV service when they need to save money each month: Cable TV is fun to watch. But when you’re struggling to pay the mortgage each month, it becomes far less of a necessity.
First-class airline tickets are in the same category: It’s a lot nicer to fly first-class. But it’s certainly not a necessary expense.
A recent story by the New York Times found that the average ticket prices for first-class and business-class flights are soaring. The cost of the average one-way business- and first-class ticket within North America came in at $676 in August, the Times reported. That’s a rather stunning increase of 140 percent from one year earlier, according to the paper. During the same time, economy airline fares rose just 3.6 percent.
It’s also more expensive to fly in luxury from the United States to Europe, according to the New York Times. The story said that the average one-way premium-class ticket price for flights between these two countries stood at $2,087 in August. That’s a jump of 11 percent from one year earlier.
With such high ticket prices, it’s little surprise that travelers are passing on the first-class treatment. But even businesses are taking the same approach.
This, too, makes financial sense. Businesses have found their profit margins squeezed tighter than ever thanks to the Great Recession. Business owners are focused on cutting costs. This includes forcing their employees to fly coach instead of first-class.
The savings between the two types of airfare have convinced a large number of businesses that it’s not that terrible for their workers to rest their heads on an armrest instead of a freshly plumped pillow.
How Much Does Those Truffles Really Cost?
Flying first-class brings with it a host of amenities. But are these amenities really worth the extra cost of a first-class ticket?
Probably not.
Consider that can of soda. It costs the airline less than $1. And those gourmet nuts? They cost the carrier just $3.50. The smooth ice cream truffles? These set airlines back just $4.99 for a 2.7-ounce serving.
And that famed first-class pillow? That costs airlines an average of $39.
As you can see, these extra touches might be nice, but they certainly don’t come with price tags high enough to justify the often exorbitant costs of flying first-class.
Travelers, then, who want to eliminate unnecessary expenses, should look first at downgrading from first-class to coach.
Yes, they’ll have to sit with the rabble as they fly over the ocean. But if they really want a nice pillow, they can bring one from home.
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