Upgrade Economics and Premium Fare Volatility

March 2024
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Why Premium Economy flyers should avoid cabin blindness

Last month, we noticed some markets where the margin between low Business Class fares and Premium Economy was very tight.

But that was last month.

Then, bang, the gap widened. In one particular example we’ll show below, the fare gap went from $200 to $2,342. That’s an extraordinary difference in the span of about 30 days.

Therein lies a cautionary message for FCF readers.

Throw your net wider than just one cabin when looking at fares. This especially applies to you Premium Economists. If you only shop within the Premium Economy cabin, you might miss a crazy-great Business Class fare that’s way closer to Premium Economy prices than you’d ever imagine.

Google Flighters, Skyscanners and Kayakers Beware

Google Flights, Skyscanner, and Kayak are all great websites, and we encourage you to use them, but there’s one thing to be wary of. They all look at one cabin on a page at a time, generally speaking. The airline websites, on the other hand, allow you to cross-check between cabins on a page. It’s a big deal because you could easily miss some great opportunities, like recently, when the fare gaps were often very close between cabins. Most Premium “Economists” simply don’t bother checking Business Class fares because they’ve been burned so many times before. But this kind of awareness can stretch your budget up to a better cabin.

Make the leap and get gap savvy

United: If You Upgraded When Fares Were Low in February

Upgrade from Premium Economy to Business Class
for $200 / $12-per-flight hour

Last month, United’s Newark to Barcelona in Premium Economy cost $2,059 round-trip, while that exact same trip in Business Class went for just $200 more. Imagine getting off that flight and discovering you could have been up in Business Class for a couple of Ben Franklins! Screenshots here:

United Newark to Barcelona in Business Class for $2,259 round-trip.

United: Upgrade Price in March

Upgrade from Premium Economy to Business Class for $2,342 / $142-per-flight hour

Now look at what happened in March for that same flight. Premium Economy went from $2,059 to $3,246 (+$1,187), and Business Class went from $2,259 to $5,588 (+$3,329). Everything increased –– including the price gap between the cabins. So everyone’s a loser in March. Screenshots follow.

United Newark to Barcelona in Business Class for $5,588 round-trip.

AA/BA: If You Upgraded When Fares Were Low in February

Upgrade from Premium Economy to Business Class for $512 / $15-per-flight hour

Here’s another example. American/British Airways’ New York-Dubrovnik route, round-trip, in Premium Economy, cost $2,397, while in Business Class, the cost was $2,909. That’s a cabin upgrade for $512, or $15 per hour. That’s a beautifully low-cost upgrade. Screenshot below, followed by what happened in March.

American/British Airways New York to Dubrovnik in Business Class for $2,909 round-trip.

AA/BA: Upgrade Price in March

Upgrade from Premium Economy to Business Class for $2,892 / $83-per-flight hour

Again, we fast-forward just 30 days with this AA/BA New York-Dubrovnik flight to discover that the Premium Economy fare remains unchanged (well, $1 higher), while the Business Class fare has increased by a whopping $2,381, a $68-per-hour increase to upgrade. No thanks.

American/British Airways New York to Dubrovnik in Business Class for $5,290 round-trip.

Delta: If You Upgraded When Fares Were Low in February

Let’s look at Delta. In February, New York to Madrid in Premium Economy went for $1,508 round-trip, while in Business Class the cost was $2,723, a cabin price gap of $1,215. Screenshots below.

Delta New York to Madrid in Business Class for $2,723 round-trip.

Delta: Upgrade Price in March

Here’s what happened in March for that flight. The Premium Economy fare rose to $1,968 (+$460) round-trip, while in Business Class it went up to $3,846 (+$1,123). As a result, the cabin price gap went from $1,215 to $1,878, a $663 cabin price gap increase.

Delta New York to Madrid in Business Class for $3,846 round-trip.

Do Your Shopping at Gap

There’s plenty of proof above that even in the space of a short time, prices rise and fall like a Coney Island roller coaster. It’s hard to follow the fluctuations (FCF is certainly a good tool to use), but you can also use airline websites, which show the different cabin prices on one page –– something you can’t do at a glance on Google Flights, Skyscanner, or Kayak. For advanced upgrade maneuvering, make this your “gap” year, and I’ll see you up front.

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