Low-cost and ultra-low-cost-carriers (ULCC) have long operated under a rigid cost-control model. With single-cabin layouts, no-frills service, and limited onboard options, these airlines prioritize revenue through volume, keeping fares low and aircraft flying as often as possible. Premium products are deliberately left out of the equation.

However, that approach is now beginning to shift. As competition intensifies and passenger expectations rise, a growing number of budget carriers are adjusting their business strategies and have introduced new seating products aimed at higher-spending travelers. From extra-legroom rows to dedicated premium sections, these airlines are starting to rethink what their cabins can offer, and who they can attract.

Budget Carriers Are Introducing Premium Seating To Meet Passenger Expectations

For instance, more than a decade ago, JetBlue, which operates with a low-cost structure (but avoids labeling itself strictly as a budget or full-service carrier), introduced its Mint business class product to compete with the legacy carriers on the transcontinental routes. In 2021, the carrier launched a redesigned version of Mint for its transatlantic service, adding enclosed suites and expanded privacy.

JetBlue also has an extra-legroom seating option and has announced plans to introduce a first class product in 2026. Additionally, a Denver-based ULCC, Frontier Airlines, has also shifted its business strategy. Later this year, the airline is introducing a first class seating option to improve its onboard passenger experience. The new configuration will place upgraded seats in the front two rows of the cabin and will offer greater space and comfort at a competitive price point.

Furthermore, Southwest Airlines is also preparing to implement a significant cabin change. Starting in 2026, the carrier will roll out premium seating across roughly one-third of its fleet. The decision is part of a broader effort to enhance the customer experience and strengthen financial performance following several challenging years.

The retrofit is expected to begin early next year and conclude by the end of 2026, with the airline projecting a $1.5 billion annual revenue boost as a result. Taken together, these developments show how budget airlines are adjusting their seating strategies in direct response to evolving market and passenger expectations and long-term business priorities.

Allegiant Airlines Exploring More Premium Seating Options

In addition, similar to Frontier, Allegiant Air is the latest budget carrier evaluating how far it wants to move beyond the traditional ULCC model. The Las Vegas-based carrier currently offers Allegiant Extra, a product that provides additional legroom in select rows across its fleet.

The airline says the option has performed well and expects approximately 75% of its aircraft to feature the more spacious section by the end of this year. The strong response has prompted internal discussions about expanding the product range even further. During an interview with The Points Guy, CEO Greg Anderson confirmed that a potential more premium offering is under review.

“It’s in the discussions,” he said, while cautioning that the long-term viability of premium demand remains uncertain. “Probably the safe play is just to [stick with] the Allegiant Extra. But the right thing for us to do is really study it. We’re still far away from … making any sort of decision. We want to kind of continue to monitor the trends, and make that call down the road.”

Related

Why Airlines Are Adding More Premium Seats Than Ever

Premium demand has skyrocketed since the pandemic.

Viability Questions Persist As Budget Airlines Test Premium Concepts

Allegiant’s decision to take a more measured approach shows the challenges that come with altering a low-cost model. For budget carriers built around uniformity and cost discipline, even small changes to cabin structure, service, or aircraft configuration can carry system-wide implications. Several low-cost operators have attempted to introduce upgraded cabins and have had mixed results.

Spirit Airlines offers one of the clearest examples. The carrier’s Big Front Seat, a wider, recliner-style product positioned in the first few rows, has been available for years. While it provides a premium option without abandoning the single-cabin layout, the product has not fundamentally changed the airline’s revenue structure or customer segmentation.

Year Founded

1997

CEO

Gregory Anderson

Norwegian also attempted to integrate a premium economy cabin into its long-haul low-cost model. Although the product initially attracted demand, it added complexity and cost to an already stretched operation. The airline ultimately discontinued its long-haul network in 2021, which brought the premium cabin to an end along with it.

Such examples make clear that demand alone doesn’t determine the product’s viability. Premium options may only be sustainable when they align with the operational and economic boundaries of the low-cost model.