More fliers opting for more room with premium economy

— -- Hungry for new revenue streams, airlines are installing premium-economy seats for passengers who want to buy more legroom by trading up or save money by trading down from other cabin classes.

Several airlines, mostly foreign, have reconfigured their long-haul aircraft in recent months to offer seats that are 5 inches to 8 inches longer in pitch — the distance between the seat back to the seat behind — and about 1 inch to 4 inches wider than coach seats. Some airlines also provide better food, wine, noise-canceling headphones and priority boarding.

The fee to upgrade to premium economy can range from $30 to $2,000 round trip, depending on the distance and services. But seats are also hundreds or thousands of dollars cheaper than flying in business or first class.

For example, the cheapest economy base fare for a February New York-London flight on British Airways costs $170 round trip, not including fees and taxes. A premium-class ticket is $619, while the cheapest business-class fare costs $2,178.

Virgin Atlantic, Japan Airlines, Qantas, Virgin America, United uauaand JetBlue jbluare among about a dozen carriers that have installed, added or upgraded their premium-class seats in recent years.

Consumer demand is relatively robust, industry executives say, as business travelers increasingly cut down on first- or business-class trips that can cost more than $10,000. They're also targeted at wealthy leisure travelers who are paying on their own to upgrade from economy without using miles.

"Airlines are dealing with customers who aren't interested in paying for business class, (as) employers are asking employees to save money," says Matt Daimler, founder of SeatGuru.com, a site that advises consumers on airline seats.

JetBlue expects to generate about $40 million of revenue by charging extra for several rows of seats in the front that have 5 more inches of legroom.

United says its sales of premium-economy seats — previously given away as a perk only to frequent fliers — have grown each year since the carrier started selling them to all passengers three years ago.

British Airways, a pioneer of the concept along with Virgin Atlantic, has its "World Traveler Plus" seats in all its long-haul jets, and is seeing sales continue to rise despite the travel downturn, spokesman John Lampl says.

For Qantas, premium economy is consistently the most filled cabin, says Wally Mariani, head of the carrier's North America operations. Virgin Atlantic's Chris Rossi says it's the carrier's "most profitable" product.

Margaret Bowles, an attorney in the Tampa area, says she often pays for premium-economy seats when the flight is more than two hours so she can work on her laptop more comfortably.

"I also find that the average family will not pay for the premium seats, so it also reduces the risk of sitting next to a noisy child," she says.

"The amount of the charge is a factor. I would not pay $50 for a premium seat but I would pay up to $25."

Another traveler, William Shea, a strategic relationship manager in Boston, says he's a fan of premium economy because it has been classified as economy fare by his employer, and "so far has not required additional authorizations."

The airline industry has tinkered with legroom for years in hopes of producing the best revenue and profit per seat. American Airlines removed several rows from coach in 2000 to create more room, only to end the program a few years later due to a lack of profit.

But foreign carriers have embraced the concept more aggressively because they had the money in recent years to spruce up the front parts of plane, including installing lie-flat seats in business class and adding an entirely new premium-economy cabin, SeatGuru's Daimler says.

In 1992, Virgin Atlantic became one of the first airlines to install premium-economy seats. In 2007, it nearly doubled the capacity, to 62 seats per plane from 32.

OpenSkies, which began flying last year, is also a visible example of the premium-economy resurgence.

The British Airways subsidiary, which serves trans-Atlantic routes between Europe and New York, flies Boeing 757s configured in two cabins of 64 seats — business class, with lie-flat beds and premium economy, with 52 inches of legroom. Its premium-economy seats are priced at full-fare economy, says Dale Moss, CEO of OpenSkies.

"It may be the very precise product for this time," he says.

Qantas started flying premium economy when it installed the new cabin in two Airbus A380s it received last year, and plans to roll them out to 747s.

Japan Airlines introduced it on European flights in late 2007, and expanded it last year to New York and San Francisco flights.

It's scheduled to introduce the four-class service on its Tokyo-Chicago and Tokyo-Los Angeles routes later this year.

Air France will also add it fleetwide this year.

The quality of premium-economy seats can vary widely from carrier to carrier.

For about $15 more, United Airlines coach passengers can trade up to its "Economy Plus" seats and get 5 more inches of legroom (36 inches total) on a one-way Chicago-Denver flight ($119 for Chicago-Hong Kong). In addition, United also sells $50 day passes to its Red Carpet Club, airline spokeswoman Robin Urbanski says.

Japan Airlines charges about $1,200 more for a premium-economy seat on a New York-Tokyo round trip. But the shell-shaped seat also comes with a noise canceling headphone, a 9-inch TV, a power outlet and access to the airport lounge.

Frequent traveler Diana Koziupa, a psychiatrist in Philadelphia, says the amenities that come with premium-economy seats often don't justify the cost.

"It's not worth the money," she says. "What do you really get for this? If I get better service from flight attendants, better food and drink — great. But just for legroom?"

Contributing: Barbara De Lollis