Airlines Are Winning by Investing in Experience, Not Cutting Costs
For decades, the airline industry was defined by an aggressive race to the bottom. Carriers slashed fares to attract customers, and every aspect of the travel experience was trimmed to reduce costs. Seats became narrower, pitch declined inch by inch, lavatories shrank to near impractical proportions, and amenities that were once inseparable from flying were unbundled and sold back to passengers one fee at a time. Throughout the 1980s and 1990s, airline executives spoke proudly about stripping services down to the minimum necessary to transport people from point A to point B.
The message was clear: passengers would tolerate discomfort if the price was low enough. The priority was cost, not quality, and the industry became known for treating travelers less like customers and more like cargo.
Yet the landscape has shifted, and the airlines that are now succeeding are those abandoning this old doctrine. Since 2022, Delta Air Lines and United Airlines have accounted for the majority of U.S. airline industry profits, and their success is not the result of winning fare wars. Instead, they have made deliberate investments in the passenger experience and focused on expanding and refining their premium cabins. The financial results reveal a profound change in traveler behavior.
According to Delta, premium seating accounted for 43 percent of total passenger revenue in the most recent quarter, a notable increase over the previous year, while revenue from standard economy declined. United has reported similar patterns: strong growth in premium bookings while main cabin demand remains flat.
“When customers buy business-class tickets, they expect to be able to travel in comfort. In the Business Class cabin, they want to feel free to manage their flying time effectively, and to do this, they require a reasonable amount of space where they can work, sleep, eat and relax.” Excerpt From: Jennifer Coutts Clay, the author of “JETLINER CABINS: Evolution & Innovation.”
What is striking is that airlines are no longer treating premium cabins as symbolic showpieces or loss leaders. Historically, business class and first class existed largely to complement corporate travel or enhance brand prestige, not necessarily to generate profit. Today, these cabins are among the highest-margin products airlines offer. Delta has gone so far as to project that by 2027, revenue from premium offerings will surpass revenue from standard main cabin seating. Analysts at J.P. Morgan have described this shift as both permanent and irreversible.
The deeper insight behind this trend is that price is no longer the sole driver of travel decisions. For a growing portion of passengers, especially those with stable incomes or the ability to expense business travel, the experience matters more than the fare. People value comfort, quiet, space, and a sense of control during journeys that can otherwise feel chaotic. When travelers visibly and tangibly perceive that an airline offers a superior experience—whether through cabin design, onboard service, airport lounges, loyalty benefits, or simply more room to breathe—they are willing to pay more.
Who is The Best in North America?
According to the 2025 J.D. Power North America Airline Satisfaction Study, which surveyed over 10,000 airline passengers between March 2024 and March 2025, the top overall performers came out as follows: JetBlue Airways ranked highest in first/business class customer satisfaction with a score of 738, followed by Delta Air Lines at 724 and Alaska Airlines at 709.
In the premium economy segment, Delta Air Lines took the top spot with a score above 717, followed by JetBlue and Alaska. In the economy/basic economy segment, budget-conscious flyers ranked Southwest Airlines highest for the fourth consecutive year.
Other sources corroborate that Delta and JetBlue are current stand-outs. For example, a recent ranking from The Points Guy placed Delta at the top of U.S. airlines for the seventh year in a row, citing its strong reliability, in-flight entertainment offerings, and overall service levels. Meanwhile, Alaska Airlines earned high marks on the American Customer Satisfaction Index (ACSI) in 2024/25 with a score of 82, leading all U.S. carriers in its survey period.
- If you’re flying first or business class and want the highest-rated experience, JetBlue and Delta currently lead.
- If your concerns are overall customer satisfaction across check-in, cabin cleanliness, staff courtesy and loyalty programs, Alaska Airlines performs very strongly.
- For economy passengers, Southwest continues to receive top marks for value and basic service.
Why they succeed
These carriers show consistent traits: high reliability, strong operational performance (on-time arrivals, minimal disruptions), excellent digital tools, premium cabin amenities (for those segments), and visible differentiation of service. When airlines invest in experience rather than just lowest fare, the passenger reaction shows up in loyalty and satisfaction scores.
If I had to name one U.S. airline that currently represents the best overall passenger experience today, I’d lean toward Delta Air Lines: it combines strong premium-class performance, solid economy metrics, operational reliability and brand momentum. That said, JetBlue, Alaska and Southwest each excel in more specific segments — so depending on your cabin class or priorities one of the others might serve you better.
Industry Strategic Insight
The U.S. airline market has shifted from fare competition to experience-based segmentation:
| Airline | Strategic Identity | Revenue Model |
|---|---|---|
| Delta | Premium network carrier | High yield, loyalty monetization |
| United | Global network expansion | Positioning to follow Delta, not lead |
| American | Operational + brand instability | Competing on scale, not experience |
| JetBlue | High-quality niche challenger | Great product, weak network economics |
| Alaska | Service-first regional leader | Stable, loyal, but small |
| Southwest | Value simplicity brand | Cost-driven, loyalty through trust |
Premium / Business-Class Traveller Experience
When it comes to premium-cabin experience in 2025, one U.S. airline stands out: Delta Air Lines. According to multiple sources, Delta’s investment in its premium product has paid off. A Business Insider review called Delta’s “Delta One” business-class seat “a true first-class experience,” citing fully lie-flat suites with doors, generous width and attentive service. Meanwhile, the Reuters analysis found that U.S. carriers increasingly rely on premium-cabin revenue for profitability, with Delta’s premium segment up and main cabin falling
Economy / Main-Cabin Airline Traveler Experience
In the economy/main-cabin category, where most travellers fly and especially where value is key, the best experience is delivered by Southwest Airlines. The 2025 J.D. Power survey ranks Southwest highest in economy/basic economy (694), followed by JetBlue (663) and Delta (662). What stands out for Southwest is its consistent operational reliability, policy simplicity, and longstanding baggage-included model (though that may be changing). While budget carriers push ultra-low fares, Southwest has preserved features valued by economy travellers: no assigned seating (until recent policies), free checked bags (pending policy changes), and a brand that emphasizes passenger experience.
This evolution challenges a long-standing assumption not only in aviation but in many industries: that customers will always choose the cheapest option. The data now suggests that when companies create offerings that feel meaningfully better, a substantial segment of customers will consistently choose premium. The key is that the difference in experience must be real. A slightly wider seat or a complimentary drink is not enough. The premium experience must feel distinct, intentional, and worth the investment. Done well, it becomes not just a product upgrade, but a value statement.
In this new era, airlines are discovering that the path to profitability lies not in removing value, but in restoring it.
Related News: https://airguide.info/category/magazineonline/airlines/airline-in-flight-services/
Sources: AirGuide Business airguide.info, bing.com, Business Insider, CBS News, excerpt From: Jennifer Coutts Clay, the author of “JETLINER CABINS: Evolution & Innovation.”