First class airline travel. Is it dead? Airlines should expand their brands with premium perks

Aviation companies are continually seeking efficiency and pragmatism, while structurally shifting from being an airline company to a brand relevant in businesses beyond travel.

That means airlines increasingly need to make candid decisions about first class. Some traditional outcomes are already evident: United is doing away with long haul first class, and Lufthansa will not feature it on its forthcoming 777X fleet.

First class attracts outsized attention. It typically generates a low single-digit share of passenger revenue but is used for marketing, since the premium elements of the pointy end deliver a marketing halo effect to the rest of the brand. It is aspirational. But first class passenger numbers are evaporating, as corporate and government travel policies change and business class becomes the new first class. First was often used for frequent flyer redemptions, or complimentary upgrades.

But as airlines extend their brands to become more relevant in daily life, they may need to forgo first class as the ultimate reward and instead deliver experiences and events. Such perks make airlines more omnipresent, allow greater creativity than the confinement of an aircraft cabin, are more exclusive to passengers - and ultimately are cheaper and lower risk for an airline to deliver.