Wendover Productions explains how airlines make money from different cabin classes and why premium seats matter so much to profits. It also touches on how this shaped decisions such as the decline of supersonic travel.
Why Hacker News points people here: HN commenters recommend it as an in-depth, accessible look at airline class economics and revisit it in many discussions about airlines.
“Would highly recommend the YouTube video below [0] from Wendover”HN comment, 2019
“I just recently found the channel. So much good stuff.”
Wendover channel on airline operations; this one on class economics
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If anyone finds the operation of airlines a fascinating topic, you might like Wendover Productions: link How airlines price flights link The little plane war link Why planes don't fly faster link The economics of Airline Class this video How airlines schedule flights link I just recently found the channel. So much good stuff. (My unrelated favorite is link How the US government will survive doomsday.)
Strongly recommendsalehulMar 2019
“Would highly recommend the YouTube video below [0] from Wendover”
In-depth look at the economics of airline classes
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Would highly recommend the YouTube video below [0] from Wendover, which went pretty in-depth on the economics of airline classes a while ago, and how first-class was the least profitable for the airlines. :) [0] this video
Strongly recommendsfilereaperNov 2021
“Highly recommend Wendover's videos on Airline economics”
Wendover's airline economics videos, this one on seat classes
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Highly recommend Wendover's videos on Airline economics, this specific one is about the various classes in Airline seats this video
RecommendsdjsumdogApr 2017
“There's a good Wendover video on airline classes”
Good video on airline classes
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There's a good Wendover video on airline classes: this video And another great one about AmTrak in relation to flight: link
Recommendscaio1982Jul 2018
“it talks about specifically why supersonic flights went into oblivion”
Explains airline class economics and why supersonic flight died
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There is also another Wendover one explaining the economics or airlines classes and it talks about specifically why supersonic flights went into oblivion: this video
RecommendsmynameisvladJun 2019
“Wendover Productions had a great video on this a few years ago”
Explains which seat classes earn airlines the most
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Economy class seats generally speaking will earn the least amount of money to an airline, so this idea would actually likely be the most unprofitable option. To make it truly profitable, you convert the plane to First class, but then you'll need to fill all those seats. Wendover Productions had a great video on this a few years ago: this video
Cites itshimon_eApr 2017
“privileged passengers account for about 70% of airline revenue.”
Source for premium passengers driving airline revenue
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Unfortunately, due to the economics of airline class[0], privileged passengers account for about 70% of airline revenue. 0. this video
Cites itclarkenheimMay 2018
“First/business class seats are where the airlines make all of their money”
Premium cabins as airlines' main profit source
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According to this: this video First/business class seats are where the airlines make all of their money, so Concord would be economically viable today.
Cites itchiphSep 2019
Premium seats analogy for rail
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I don't understand why they won't run a platform car on the back of the trains and sell tickets as a super-premium class. It'd be the most profitable seats on the train because of what you'd charge for the experience, much like how the few 1st class seats on an jet earns the airline more than the entire economy class. this video Sure, the product is basically the same - a ride from Point A to Point B. But if you offer a private dining room, an observation lounge, a steward who attends to just you and 3 other cabins, you can charge way more than an economy seat. By only focusing on the "Point A to Point B" aspects, they're entering a downward financial spiral.
Cites itmeinersburJul 2025
“Economy class fills the plane, but business and first class are the money makers”
Example of market segmentation in airline seating
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There is also market separation in play: For the base service you only charge cost+small margin. For higher service levels you charge higher profit margins even though the additional service does not cost that much more to provide. Best example: flight seats. Economy class fills the plane, but business and first class are the money makers [1]. [1] this video
Cites itThorrezSep 2025
“This video is basically saying the opposite of you: that business/first class subsidizes economy.”
Used to challenge a claim about class profitability
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Do you have a source showing $/sqft of economy vs business/first class? This video is basically saying the opposite of you: that business/first class subsidizes economy. this video
