The premium economy class is experiencing significant growth in the Indian aviation market, driven by rising disposable incomes and a desire for enhanced travel experiences. Several airlines are expanding their premium economy offerings to meet this increasing demand.

Market Growth and Trends

Data indicates a substantial increase in premium economy seats in India. In November 2019, premium economy seats accounted for a mere 0.2% of the total seats, but by 2025, this has grown to 1.14%, a tenfold increase. This growth is primarily driven by Air India's introduction of three-class configurations and premium economy on international routes. Overall demand for business class and premium economy seats has increased by 50-60% over the past year. This surge in demand is particularly strong on key metro routes such as Delhi-Mumbai and Delhi-Bengaluru. Factors such as growing affluence, increased business travel, and the desire for more comfortable travel experiences are contributing to this trend.

Air India's Expansion

Air India is playing a key role in the expansion of premium economy in India. The airline is retrofitting its narrow-body aircraft to include a three-class configuration: business, premium economy, and economy. These aircraft will feature 24 premium economy seats and eight business class seats. Air India aims to retrofit 85% of its narrow-body aircraft by the second half of 2025, offering approximately 1,000 premium economy seats daily. The airline is also set to commence retrofitting its widebody jets, with the first Boeing 787-9 expected to be rolled out later this year. By mid-2025, Air India will have completed refurbishing 27 of its legacy A320 aircraft, increasing the total number of aircraft with three-class configurations. Air India is expanding its Premium Economy Class across 39 domestic routes. With over 50,000 weekly Premium Economy seats, the airline caters to key metro routes. To cater to increasing demand, Air India is set to expand its premium economy seating capacity by 30%, bringing the total available seats per week to more than 65,000.

Airline Offerings and Amenities

Airlines are introducing value-added services and enhanced in-flight experiences to justify fare structures. Premium economy services vary across airlines but typically include plush seats with better recline, more food options, a wider variety of drinks, and priority boarding. Air India's premium economy class offers priority check-in, boarding, baggage handling, enhanced dining, and extra legroom. Emirates' premium economy seats are among the most spacious, with a width of 19.5 inches and a pitch of 40 inches, offering eight inches of recline. Singapore Airlines' premium economy class includes ample room to stretch out, adjustable personal reading lights, in-seat USB ports, and noise-canceling headphones. Cathay Pacific offers dedicated check-in lines and priority boarding for premium economy passengers.

Pricing and Accessibility

Premium economy offers a balance between comfort and affordability, bridging the gap between economy and business class. Travel booking platforms are offering discounts on premium tickets to encourage more travelers to book these options. Air India has introduced limited-period premium economy fares starting at INR 599 above standard economy tickets.

Impact and Future Outlook

The expansion of premium economy signifies a shift in Indian air travel, with an increasing number of passengers opting for a premium travel experience. As competition intensifies in India's aviation sector, Air India's three-class configuration differentiates it from competitors, offering passengers more choice and value. Premium economy is expected to continue its growth trajectory in the Indian aviation market as more airlines introduce and expand their offerings.