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United Airlines Boeing 787 Dreamliner Flight
Empty section of the economy class in a United Airlines Boeing 787 Dreamliner aircraft, on April 20, 2024 (Getty Images)
Slow coach

US airlines are still doubling down on premium seats, as the K-shaped economy takes off

There’s really not much room in economy these days.

Millie Giles

With airports across the nation still seeing delayed security wait times amid ongoing TSA chaos, some travelers might be wishing they had shelled out for a first or business class ticket to get into the “Priority” lane.

And it seems America’s biggest airlines are also betting that passengers are now more willing to upgrade: a new report from The Wall Street Journal, published Sunday, details how airlines have shrunk traditional economy cabins over the last decade to make room for a growing number of premium offerings.

Indeed, according to aviation data from Visual Approach Analytics cited in the report, the number of scheduled first and business class seats on domestic flights has expanded by 27% since January 2020 — almost 3x greater than the 10% growth seen for scheduled economy seats.

That’s not even accounting for premium economy, an intervening class that became a standard option for many major airlines in the 2010s, which, the WSJ wrote, can be “priced at least twice as high as regular economy seats and only take up slightly more room on the plane.”

premium seats
Sherwood News

Looking at four of the biggest air carriers in the US — Delta Air Lines, United Airlines, American Airlines, and Alaska Airlines — all have increased their respective shares of premium seats since 2016, with premium offerings now making up 12% of their cabins on average in 2026.

Business end

Many airlines are rolling out redesigned cabins to make planes “financially efficient,” adding room for more expensive tiers by cutting into cheaper sections. The trend speaks to the emergence of Americas K-shaped economy, in which wealthier consumers continue to splurge as lower-income spenders cut back.

For example, United’s new Dreamliner jet layout includes 16 more business class seats, 14 more Premium Plus seats... and 65 fewer seats in the economy section. Delta has already found success squeezing profits from the top, with its premium ticket sales growing more than 7% last year, while main cabin ticket sales fell 5%.

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Used car prices dip in April but remain at 2023 levels as gas prices surge

Used car prices ticked down in April, the first drop in 2026, according to fresh data from Cox Automotive.

Cox’s Manheim Used Vehicle Value Index, which tracks wholesale prices, dipped 1.6% in April from March, but remains around highs not seen since 2023 as shoppers react to surging gas prices.

“Affordability remains front and center, and that’s driving some increased demand for older vehicles... as well as changing the calculus for consumers shopping for EVs,” said Cox’s chief economist, Jeremy Robb.

As reported in March, used car retailers including CarMax have told Sherwood News that gas prices are driving more shoppers to look toward EVs. Cox’s EV index is up 7.2% from April 2025, compared to a 1.1% hike for its non-EV index.

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Xbox CEO overhauls leadership team with Microsoft AI execs amid sales declines

Microsoft is continuing to shake up Xbox, with gaming chief Asha Sharma (who took over the division suddenly in February) announcing an executive overhaul.

According to an internal memo seen by CNBC, Sharma is bringing four leaders from her former CoreAI group into the Xbox fold, as they have “consumer and technical expertise [Xbox does] not yet have.”

“Right now, it is too hard to ship impact quickly. We spend too much time inward instead of with the community, and we lack the depth we need in some of the fundamentals,” Sharma said in the memo.

Aside from the CoreAI team, David Schloss, a former Instacart growth exec, will take over the subscription and cloud business.

Following Microsoft’s earnings report last week, in which Xbox console sales fell 33% from last year, Sharma said the division had work to do. The company forecast more sales declines for Game Pass and consoles in the current quarter.

“Right now, it is too hard to ship impact quickly. We spend too much time inward instead of with the community, and we lack the depth we need in some of the fundamentals,” Sharma said in the memo.

Aside from the CoreAI team, David Schloss, a former Instacart growth exec, will take over the subscription and cloud business.

Following Microsoft’s earnings report last week, in which Xbox console sales fell 33% from last year, Sharma said the division had work to do. The company forecast more sales declines for Game Pass and consoles in the current quarter.

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