ANALYSIS-WestJet seat U-turn exposes risks for airlines squeezing economy passengers

Reuters01-22 19:00
ANALYSIS-WestJet seat U-turn exposes risks for airlines squeezing economy passengers

WestJet's reversal highlights limits to how far airlines can squeeze economy comfort

North American carriers are adding premium seats and charging add-on fees for economy

Airlines argue lower base fares and fee revenue help fund profits and rising costs

By Allison Lampert and Rajesh Kumar Singh

MONTREAL, Jan 22 (Reuters) - Canada's WestJet abruptly walked back a rollout of tighter economy seating last week after viral videos showed passengers struggling with cramped legroom. The U-turn offered a sharp warning to North American airlines redesigning cabins to favor higher‑paying travelers, often by trimming space and cutting once‑standard perks in the back of the plane.

WestJet had reconfigured part of its Boeing BA.N 737 fleet to add premium seating and an extra six seats in economy. To make room, some economy rows were fitted with fixed-back seats that could not recline and the space between seats, known as the pitch, was reduced from 30 to 28 inches (76 to 71 cm).

While the airline backed away, the episode has become a flashpoint in a broader North American push to chase higher-paying travelers and charge economy passengers extra for things that once came standard.

WestJet said its changes were aimed at giving travelers more options at different prices, but critics argued it was another step toward a thinner economy product — less comfort and more fees for basics such as choosing seats.

Independent airline industry analyst Robert Mann said WestJet's case serves as a "cautionary tale to other carriers that there is a limit" to what economy passengers will tolerate.

Executives at Delta Air Lines DAL.N, United Airlines UAL.O and American Airlines AAL.O have told investors demand is holding up best at the front of the cabin, while demand for the cheapest tickets is more fragile as lower-income earners are pinched by rising costs since the pandemic.

At Delta, increased demand for premium cabins has more than offset softness in the main cabin. The airline said premium-cabin revenue surpassed main-cabin revenue for the first time in the fourth quarter, and expects nearly all near-term seat growth to come from premium cabins.

THE ECONOMY SQUEEZE

As airlines add extra-legroom rows, premium economy and expanded first-class cabins, the trade-offs are increasingly borne by price-sensitive travelers: less legroom, fewer inclusions, and more charges for features that used to be part of the ticket.

United has expanded its use of Basic Economy, restricting changes, advance seat selection and, on many routes, limiting travelers to a personal item unless they qualify for exemptions. American has also trimmed perks on its cheapest fares.

Even economy‑focused carriers are shifting. Southwest Airlines LUV.N, long known for open seating, is moving to assigned seats later this month, adding fare bundles and paid extra‑legroom options.

Air passenger rights advocate Gabor Lukacs said travelers have learned that economy can end up costing more than the bundled fare once fees are added.

Airline executives say travelers benefit from lower base fares and that the trade-offs help airlines cover rising labor and operating costs. Data from research firm IdeaWorksCompany shows fares fell 3.8% in 2024 from a year earlier, while per-passenger revenue from add-on fees rose 2.5%.

Asked for comment, WestJet referred to a Friday statement from the carrier's CEO, saying the airline "tried seat pitches that are popular with many airlines around the globe as they serve to provide affordable airfares."

European budget carriers such as Ryanair, Wizz Air and easyJet have long sold seats with 28 or 29 inches separating them from the row in front. Many of those planes fly short-haul routes.

Still, some analysts caution the strategy assumes premium demand will hold up. In past downturns — including the 2008 financial crisis and the early months of the pandemic — that demand fell off quickly. They also note that most seats are still sold to price-sensitive travelers, whro may be less willing to accept less legroom and fewer inclusions as the new normal.

VIRAL BACKLASH

The WestJet episode has renewed scrutiny of how far airlines can go in tightening economy cabins as they add more premium seating. "Economy passengers may not buy lie-flat seats, but they still vote with their cameras, their posts, and their purchasing decisions," said Ronn Torossian, chairman of New York crisis PR firm 5WPR.

Before WestJet reversed course, Chief Experience Officer Samantha Taylor told staff the rollout was hurting cabin crew dealing with passengers' frustrations and the brand.

Some flight attendants and passengers said the intensity of the WestJet backlash was due to concerns that the denser seating could slow evacuations.

Some cabin crew raised concerns to regulator Transport Canada, and their union sought a risk assessment from the airline, people familiar with the matter said. Transport Canada said the configuration meets federal safety standards.

Boeing, which produced the plane, did not immediately respond to a request for comment.

When asked about approval for cabin reconfigurations, the U.S. Federal Aviation Administration said it allows planemakers to use a computer analysis for certification purposes if reliable test data exists from previous live evacuation demonstrations.

Two passengers who sat in the reconfigured seats said they could not have gotten into the emergency brace position.

One of them, Amanda Schmidt, 32, who recorded a widely shared video of her 6-foot-3 father wedged into an economy seat for part of a four-hour flight, added that the redesign caused such a stir because it crossed a basic threshold.

"When you buy a seat for a human, it should fit a human," Schmidt said. "You shouldn't have to pay extra just because you’re tall."

(Allison Lampert in Montreal and Rajesh Kumar Singh in Chicago; Editing by Joe Brock and Rod Nickel)

((allison.lampert@thomsonreuters.com, 514-796-4212))

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