Airlines' upsell era is getting stranger

Airlines have already charged you for the bag, the legroom, and the privilege of choosing where you sit. With jet fuel prices still soaring, here’s what’s next: couches and child-free flights.

US carriers are stuck with an unpleasant combination of expensive fuel and passengers who (fortunately) still want to travel. American Airlines reported record quarterly revenue today, but a fuel bill that jumped more than 68% from a year ago still pushed it to a loss. Southwest spent $821 million more on fuel last quarter than a year earlier, while United’s bill shot up $1.8 billion.

Rather than wait for oil prices to cooperate, airlines are getting creative—and rolling out premium and oddball new products for the business lines they can control.

Let me upgrade you

Southwest may be the clearest example. The airline built its brand around being the simple, low-cost alternative. Now it’s rolling out assigned seating, extra-legroom options, new loyalty perks, and even its first airport lounges as it tries to attract travelers willing to spend more.

Those upgrades are already helping: Southwest said its new product offerings are attracting business and price-flexible travelers, while third-quarter revenue hit a record.

The airline isn’t alone. American’s premium cabin revenue jumped about 22.9% last quarter, outpacing economic growth, while United’s rose 17%.

And airlines are getting increasingly creative about what qualifies as premium. United’s new “Relax Row” lets long-haul passengers buy three economy seats that convert into a couch-like bed with a mattress pad and bedding. While it’s not quite business class, it’s better than sleeping on your own shoulder.

JetBlue, meanwhile, has found something even harder to manufacture: silence. The airline announced this week that it’s partnering with Virgin Voyages on an adults-only travel package, which includes a flight with no children onboard. ‘No screaming toddlers’ has officially become an amenity.

Wallets buckle up

Airlines can get these ideas off the ground for one big reason: Passengers haven’t stopped flying. That gives carriers room to chase more revenue from each traveler, rather than fighting for them with cheaper tickets.

That dynamic could matter even more next year. United executives warned this week that elevated fuel costs could stretch well into 2027, while airlines are already cautious about adding capacity.

That isn’t especially encouraging for bargain-hunters. If fuel stays expensive and demand holds up, airlines have less incentive to flood the market with cheap seats—and more incentive to dedicate them to travelers who pay for extra room, perks, and status.

For investors, the question heading into 2027 may be less about whether people keep flying, and more about which airlines can get enough revenue from each passenger to outrun the fuel bill. Getting on the plane may soon be the cheapest part of the trip.—HC