US Airlines Boost Premium Revenue Amid Travel Demand Slump

U.S. airlines such as Delta Air Lines and United Airlines are successfully navigating a slump in overall travel demand by focusing on premium passengers, whose spending has remained resilient despite economic uncertainty. Delta reported a 5% year-over-year increase in premium ticket revenue in Q2 2025, contrasting with a 5% decline in main cabin revenue, allowing it to maintain double-digit profit margins. United Airlines saw a 5.6% rise in premium revenue, which helped offset operational challenges at its Newark hub and contributed to a modest overall passenger revenue growth of 1.1%. These gains reflect the strong financial position of U.S. households earning over $100,000 annually, who account for about 75% of airline ticket spending and have continued prioritizing travel amid inflation and economic swings under President Donald Trump's administration. In contrast, lower-income travelers are reducing spending due to rising living costs, causing budget carriers like JetBlue to face challenges and implement cost-cutting measures. Industry experts view the focus on premium cabins as a strategic move to mitigate economic risks and sustain airline profitability.