Travelers splurge on business class to skip economy squeeze

TORONTO, Canada — A growing number of North American flyers, many of them based in metro areas such as Toronto, are deciding that the extra elbowroom and perks of premium cabins are worth the higher price of admission.

Rebound travel budgets collide with tighter seats

For years airlines have been squeezing additional rows into economy cabins, charging for once-free coffees, and even experimenting with non-reclining “ultra-basic” seats. The result: more passengers are willing to pay to escape the back of the plane. Air Canada’s financial filings show premium-cabin revenue climbed 5% in the second quarter of 2025 compared with the same period a year earlier. WestJet told CBC it has seen “double-digit” year-over-year growth for its premium and business sections, although it has not released exact figures.

First-time splurges that turn into habits

Toronto retiree Jane Leckey started flying in the front after her second cancer diagnosis. “It was the best thing ever,” Leckey said on CBC’s Cost of Living. Her inaugural business-class trip to Iceland two years ago changed how she values travel time and comfort. Having survived brain cancer at 19 and, decades later, early-stage breast cancer, she now views every journey as a chance to invest in quality of life. Leckey is not alone. Experts say many vacationers have re-evaluated their spending priorities since the pandemic hiatus. Personal-finance writer and frequent traveler Barry Choi sees a consistent pattern among clients. “Premium economy is kind of the sweet spot," Choi said on CBC’s Cost of Living.

Sticker shock: what the upgrade really costs

Business-class fares typically run four to five times the price of an economy seat, while premium economy averages about double, according to Choi. Yet dynamic pricing can flip that math on its head. Montreal travel agent Katherine Velan told Radio Noon Quebec she has occasionally found premium economy seats priced lower than coach when demand spikes for the cheapest fare buckets.

Why the back of the plane feels worse than ever

In 2024, Air Canada removed free carry-on allowances from select discount tickets, forcing travelers to pay extra or risk a gate-check delay. WestJet, meanwhile, is refitting some aircraft so that hundreds of the cheapest seats no longer recline, freeing up room for an expanded premium section forward of the curtain. Leckey remembers the anxiety of guarding her bag in crowded overhead bins. “They have made it undesirable to sit,” Leckey said on CBC’s Cost of Living, noting that a misplaced carry-on could mean a missed connection or luggage routed to “a different continent.”

Gamified upgrades: bidding and last-minute auctions

Airlines earn far more profit from the front of the cabin than the back, so they have become creative about filling those seats. WestJet lets customers place blind bids days before departure or join real-time auctions in the hours before boarding. The tactic turns seat selection into a game. “I got good value out of making this bid,” Choi said on CBC’s Cost of Living, adding that once travelers win an upgrade they are more likely to try again.

Tips for travelers weighing the splurge

• Set fare alerts for both economy and premium economy. Sudden shifts in demand can make the higher class cheaper than the lowest coach fares.
• Check whether your airline offers upgrade bidding. Enter a price you consider fair and be willing to walk away if the bid fails.
• Factor in ancillary fees. If you normally pay for extra legroom, a checked bag, or priority boarding, the effective price gap may be smaller than advertised.
• Use points strategically. Some loyalty programs let you top off cash bookings with miles to jump a cabin.
• Book early for peak dates. Upgrade space tightens as planes fill, especially on trans-Atlantic departures before major holidays.

FAQ: Premium seats for the post-pandemic traveler

Is premium economy worth it on short flights?

If flight time is under three hours, paying double may not deliver enough value unless you need the extra baggage allowance or earn status miles faster.

Do all business-class seats lie flat?

No. Regional aircraft and some older narrow-body jets still use a recliner-style chair. Check the seat map before purchasing.

Will bidding hurt my existing seat selection?

Your economy assignment usually remains intact until the bid is accepted. If the airline upgrades you, your original seat returns to inventory.

Can travel insurance cover an upgrade?

Most standard policies reimburse only the ticket class originally purchased, so factor that into risk calculations.

The bottom line for 2025 flyers

Premium cabins cost a lot more, but frustration in economy and new incentive schemes are convincing a subset of travelers that comfort is worth the cash. Whether chasing legroom, champagne or simply peace of mind, North Americans eager to “travel better” appear ready to keep paying up. As Leckey’s experience suggests, the true value of those lie-flat seats may be measured less in dollars than in the assurance of making the most of every journey — something increasingly important when, as she puts it, tomorrow is never guaranteed. — as Leckey told CBC’s Cost of Living.