Airlines globally, including Air France-KLM, are grappling with soaring aviation fuel costs and disruptions to travel patterns, largely influenced by the Middle East conflict.
However, Air France, a subsidiary of Air France-KLM, remains resilient. CEO Ben Smith told Reuters that the airline leveraged the appeal of the television series "Emily in Paris", banking on travelers' enduring passion for French fashion, cuisine, and hospitality in the French capital.
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A scene from "Emily in Paris". Photo: Netflix |
A scene from "Emily in Paris". Photo: Netflix
Smith noted, "All luxury brands are headquartered in Paris. It also boasts more Michelin-starred restaurants than anywhere else globally."
Amid the fuel crisis, Air France heavily invested in its most profitable passenger cabins. The airline enhanced premium services, upgrading in-flight menus to include caviar and champagne.
Air France's costly gamble is yielding positive results. Premium economy, business, and first-class seats have all seen growth in bookings and revenue this year, despite Air France increasing ticket prices to offset escalating fuel costs.
According to company data, revenue from first and premium class services increased by 11%. Smith also dismissed concerns that rising inflation in the US might impact spending in the luxury segment. He stated, "We have significantly raised ticket prices, but the situation remains very favorable. The results are better than I anticipated."
In fact, Air France's wealthiest customers are undeterred by higher prices. Some individuals who previously used private jets are now opting for first class to avoid public scrutiny regarding large carbon footprints.
Focusing on first-class passengers is also a strategy adopted by Europe's largest airline groups, including IAG (the parent company of British Airways) and Lufthansa. These groups have unveiled new first-class cabin designs in recent years to meet the growing demand for premium air services, particularly from affluent American travelers.
According to CNN, airlines paid billions more in USD for fuel this year due to the ongoing Iran war. The four largest US airlines: United, Delta, American, and Southwest, incurred nearly 80% higher fuel costs from April to June compared to the same period last year. Consequently, some airlines plan to eliminate low-cost, less profitable flights in the coming months.
By Bao Bao (based on reports from Reuters and CNN)
