The rise and rise of premium economy: Why Kiwis love flying in the middle class

A welcome glass of champagne in premium economy for Singapore Airlines (L) and Air New Zealand (R).
Premium economy on Singapore Airlines (L) and Air New Zealand (R). Photo credit: supplied

While business class and first-class airfares are just too expensive for most of us, more and more Kiwi travellers are paying extra to escape the "cattle class" experience with premium economy airfares.

The in-between cabin gives passengers more space as well as better food and drink than economy, fancy onboard amenities and usually other benefits like premium check-in and extra baggage allowance.

It's a taste of some of the luxury found in business class but for half the price or less. What it costs to upgrade from standard economy is also much more manageable for anyone with a decent amount of frequent flyer points.

As part of a global trend, premium economy has been rapidly growing in popularity in the New Zealand market since the travel restrictions of the COVID-19 pandemic came to an end. An industry report released in December mapped out the boom of the "middle cabin" and argued it could soon deliver more profit for airlines than business class.

Airlines are, of course, reacting.

Singapore Airlines recently upgraded its premium economy, making it more of a business class-lite experience rather than economy-plus. Its passengers are now greeted with a glass of Charles de Cazanove Brut Tradition NV champagne after take-off, before being able to choose from more than 200 dining options which are served on custom-made porcelain.

Singapore Airlines premium economy serves Charles de Cazanove Brut Tradition NV champagne.
Photo credit: supplied

George Robertson, Singapore Airlines New Zealand General Manager, chatted with Newshub after the airline's first major revamp of premium economy since first launching it in 2015.

"We've been really heartened to see a very good response to our premium economy product," Robertson said.

"The added space, the extra comfort, the enhanced food and beverage options - different customers have different value drivers of what they like most about premium economy. Post-COVID we've seen a very strong rebound in what we call premium leisure demand, especially with passengers going to Europe.

"We've seen an uplift of about 19 percent with premium economy passenger carriage on our Auckland and Christchurch flights over the last 12 months compared to the same period before COVID, which I think is reflective of an overall increase in travel demand.

"People have been itching to get back out there, especially to get back to Europe and North Asia. A lot of premium leisure travellers are flying premium economy - they might be off to join a cruise or flying to one city and coming back from another. 

"They really value the additional amenities and comfort that comes with premium economy."

A 19 percent increase is significant - and that's only one of many airlines offering premium economy to Kiwis. Emirates also launched its premium economy class on New Zealand flights in 2023 and now has a total of 112 premium economy seats going into and out of Aotearoa every single day.

Air NZ, which was recently heralded by AirlineRatings.com as having the world's best premium economy in 2024, said its middle class is also gaining popularity and it's adding capacity as a result. 

"Over the last couple of years we've seen more customers select premium economy as their cabin of choice," Scott Carr, Air NZ's general manager of long haul, told Newshub.

"Our premium economy offering has always been popular on our long-haul routes however over the past couple of years we've seen it grow in popularity on flights to the Pacific Islands and Australia as well.

"Demand for premium economy has also been strong to and from Japan and as a result we are adding 12,000 more premium economy seats on this route between November 2024 and March 2025."

Singapore Airlines' new premium economy amenity pack (L) is made in partnership with Out of the Woods, while in 2023 Air NZ ditched Ashley & Co in favour of Aotea skincare products (R) for its premium economy amenity packs.
Singapore Airlines' new premium economy amenity pack (L) is made in partnership with Out of the Woods, while in 2023 Air NZ ditched Ashley & Co in favour of Aotea skincare products (R) for its premium economy amenity packs. Photo credit: supplied

Former Newshub travel editor Dan Lake reckons premium economy's popularity with New Zealanders can be somewhat attributed to geography.

"Becoming a good traveller is something that's almost forced on Kiwis due to Aotearoa's isolated location. Most destinations involve being on a plane for many hours," said Lake, who is now the digital editor of Australia's Traveltalk Magazine.

"I think because of this, Kiwi travellers value the additional comfort that premium economy brings. They're fine leaving business class to those who can afford to splash out on a full flatbed situation and go with an airline that offers premium experience at something that's closer to the economy airfare.

"Kiwis may have also built-up frequent flyer points to spend on upgrades and in the post-COVID world people are willing to spend more on a greater travel experience, so you can see why premium economy is becoming more popular."

The premium economy class was first introduced by Virgin Atlantic and Taiwan's EVA Air in the early 1990s and since then has been innovatively pioneered upon by the likes of Qantas, Cathay Pacific and Japan's ANA.

Air NZ has been credited with innovating air travel many times over the years including with its premium economy product, such as the 'Spaceseat' launched in 2010. Those were later phased out but hard-shell seats are set to return in the airline's upcoming refresh of its fleet.

Qantas (L) and Cathay Pacific (R) also offer premium economy airfares on New Zealand flights.
Qantas (L) and Cathay Pacific (R) also offer premium economy airfares on New Zealand flights. Photo credit: supplied

Many people who upgrade to premium economy appreciate the higher quality of food, and better meals are a clear focus of the recent Singapore Airlines revamp.

"We aspire to consistently have an industry-leading standard of food and beverage across our network. We're pleased to be able to offer a very varied and wide selection of international cuisines," said Robertson.

A treat previously only for first and business class passengers is "book the cook", now also offered to Singapore Airlines premium economy passengers flying out of Auckland or Christchurch.  

That offers a selection of up to 20 dishes available on rotation that customers can pre-order at least 24 hours before departure. Think Singaporean favourites like seafood hor fun or chicken biryani, as well as the likes of slow braised lamb ragout, sake teriyaki and plant-based wellness dishes like mushroom eggplant meatballs.

Chicken satay with nasi goreng kampung is a premium economy meal option with Singapore Airlines.
Chicken satay with nasi goreng kampung is a premium economy meal option with Singapore Airlines. Photo credit: supplied

"Book the cook I think is really highly valued because it means you can be certain that the dish that excites you the most will be delivered to you onboard," said Robertson.

"I suppose it adds excitement to the planning process before you get to the airport as part of your preparation for travel, too."

It's this sort of "affordable luxury" the cabin offers over economy class that an increasing number of people are willing to pay for. And as the demand for premium economy grows, competition among the airlines will become fiercer, which should mean even better onboard experiences as well as lower prices and more frequent sales.

In addition to the appealing profitability of premium economy, airlines are reportedly motivated by another factor in expanding capacity: reducing frequent flyer point balances. Those, along with outstanding COVID-19 travel credits, represent liabilities for airlines, so offering premium economy seats provides an efficient means for passengers to redeem them.

It all adds up to more premium economy options for Kiwi travellers and, hopefully, a lot more of us enjoying the comforts of the middle class soon.