Uploaded August 2026 | Updated September 2026, 2 weeks ago
Business class isn’t just for corporate travelers anymore. Affluent vacationers are increasingly choosing premium cabins—and becoming one of the biggest drivers of airline profitability.
Steve Saxon, coleader of McKinsey’s Travel, Logistics & Infrastructure Practice, explains what’s behind the rise of premium leisure travel and what it means for airlines. He talks with Global Editorial Director Lucia Rahilly about why some travelers are willing to pay more for premium seats and how it’s prompting carriers to rethink everything from pricing to service to cabin design and product innovation.
The McKinsey Podcast is cohosted by Lucia Rahilly and Roberta Fusaro.
*Chapters:*
00:00 – Intro: Window, aisle, or both?
01:37 – Why airline profit margins remain so thin
04:30 – How seasonality and geopolitics affect airlines
06:16 – The rise of premium leisure travel
09:30 – How airlines are reinventing the premium experience
12:41 – How premium demand is changing airline economics
16:57 – How airlines price business and leisure travel
19:57 – How AI could change flight booking
22:17 – What this means for the future of airlines
Read the full article: mckinsey.com/industries/travel/our-insights/airline-premium-cabins-profitability-at-the-front-of-the-plane
Any unanswered questions about this episode? Send them our way at: TheMcKinseyPodcast@mckinsey.com.
Theme music composed, performed, and produced by Joy Ngiaw.
See mckinsey.com/privacy-policy for privacy information.
Business class isn’t just for corporate travelers anymore. Affluent vacationers are increasingly choosing premium cabins—and becoming one of the biggest drivers of airline profitability.
Steve Saxon, coleader of McKinsey’s Travel, Logistics & Infrastructure Practice, explains what’s behind the rise of premium leisure travel and what it means for airlines. He talks with Global Editorial Director Lucia Rahilly about why some travelers are willing to pay more for premium seats and how it’s prompting carriers to rethink everything from pricing to service to cabin design and product innovation.
The McKinsey Podcast is cohosted by Lucia Rahilly and Roberta Fusaro.
*Chapters:*
00:00 – Intro: Window, aisle, or both?
01:37 – Why airline profit margins remain so thin
04:30 – How seasonality and geopolitics affect airlines
06:16 – The rise of premium leisure travel
09:30 – How airlines are reinventing the premium experience
12:41 – How premium demand is changing airline economics
16:57 – How airlines price business and leisure travel
19:57 – How AI could change flight booking
22:17 – What this means for the future of airlines
Read the full article: mckinsey.com/industries/travel/our-insights/airline-premium-cabins-profitability-at-the-front-of-the-plane
Any unanswered questions about this episode? Send them our way at: TheMcKinseyPodcast@mckinsey.com.
Theme music composed, performed, and produced by Joy Ngiaw.
See mckinsey.com/privacy-policy for privacy information.
