Airlines Target Wealthy Travelers Amid Weaker Demand

As airlines face weaker demand for both domestic and international travel due to the effects of President Donald Trump's trade policies, carriers are increasingly shifting their focus to wealthier travelers—a segment that has shown consistent revenue growth.

A survey by the University of Michigan revealed a sharper-than-expected decline in consumer sentiment, with inflation reaching its highest level since 1981. Rising economic concerns and a downturn in corporate travel have further reduced demand. Bank of America reported a noticeable drop in consumer spending on leisure activities, including travel and entertainment.

Delta Air Lines and Frontier Airlines have withdrawn their 2025 outlooks, citing uncertainty in the US economic landscape. Both carriers announced plans to scale back growth initiatives or reduce capacity on domestic routes for certain days. The decline in domestic and corporate travel, combined with a drop in Canadian visitors—lineked to unfavorable exchange rates and political tensions—has prompted airlines to target premium passengers.

Airlines are increasingly betting on high-income leisure travelers, a segment that experienced robust growth during the pandemic. In recent years, premium seats have become more spacious and significantly more expensive. Several airlines are investing in first-class offerings for long-haul international flights. According to CNBC, deliveries of new planes for Air France and Lufthansa have been delayed because premium seating installations require hundreds of components and regulatory approvals.

Delta Air Lines President Glen Hauenstein noted that the premium segment is already outpacing main cabin growth on international long-haul routes. However, airlines are also grappling with a decline in foreign visitors to the United States. In addition to Canada, several countries have reduced travel to the United States. In March the number of non-US visitors dropped by 10% compared to the previous year, according to the US Department of Commerce.