Frankfurt: Lufthansa has declared its premium economy a success less than a year after the new cabin class, its first in 35 years for long-haul flights, was introduced.
The response by volume, yield and passenger feedback met the German carrier's expectations, confirming its decision for a new travel class, said Jens Bischof, chief commercial officer.
Premium economy was introduced in November last year, one of Lufthansa's biggest product upgrades in its history, costing US$4 billion.
Towards the end of next month, Lufthansa is due to complete the installation of 3,600 premium economy seats, each costing the equivalent of a new Volkswagen Golf in Germany, on its 106 aircraft.
"We have not yet really started promoting our premium economy and not a lot of travellers are aware of this offering, but we will do so once our installation is complete," said Mr Bischof.
Once the word spreads, particularly in large travel markets like China, Lufthansa can capitalise on emerging demand for premium economy, he said.
Lufthansa's early success with premium economy is credited to more travellers willing to pay for something better than coach. The new travel class aims at cost-conscious business and leisure travellers who want more comfort and privacy along with enhanced service but would rather not fork out for business class.
A round-trip Bangkok-Frankfurt fare on Lufthansa's premium economy is around 54,500 baht, just over 45% more than the coach fare on the same aeroplane and about 56% less than business class.
Lufthansa's premium economy seats offer up to 50% more room than the airline's economy.
Depending on the aircraft type, the seat is up to three centimetres wider and provides greater privacy as well as about 10 centimetres more room at the side thanks to each seat having its own armrest and a central console between the seats. The back rest can be reclined further and the seat pitch is more spacious with 97 centimetres.
With a baggage allowance of two items weighing up to 23 kilogrammes each, premium economy passengers can take twice as much free luggage with them compared with economy class. The head rests can be set to the exact height desired and folded at the sides for added comfort and support. There are height-adjustable foot rests from the second row.
Lufthansa's premium economy has some features of business class: a welcome drink (no champagne) upon boarding, amenity kit and bottled water in the seats. Meals are presented on menus with two choices as in coach, but with a bit more food served on porcelain tableware on a tray.
Mr Bischof was frank that Lufthansa's premium economy is not the best in class when compared with Singapore Airlines (SIA). But he insisted Lufthansa has everything necessary to appeal to travellers, particularly for the price. SIA's premium economy to Europe may cost some €350 (14,000 baht) more than Lufthansa's, he said.
The target market for premium economy looks like the market for business class over two decades ago, said Annette Mann, director of customer experience at Lufthansa.
Premium economy is as profitable per square inch for Lufthansa as business class, Mr Bischof said.
Lufthansa expects about 1.5 million passengers annually on its new premium economy, projecting to earn about €1 billion a year from it. Some 10% of all seats on Lufthansa long-haul aircraft will be retrofitted for the premium economy class.
Ms Mann said business class had evolved so much over the years, becoming what first class was in the past.
But business-class travellers are unlikely to trade down because the flat beds and perks in today's business class are still a world away from premium economy, she said.