European airlines are waging a first-class battle to woo rich travelers who like turning left

• Air France unveiled a new first-class suite, joining rivals Lufthansa and British Airways.
• They appear to be prioritizing US destinations as transatlantic travel soared post-pandemic.
• "It's unbelievable what Americans are paying to come over here," said Air France-KLM CEO Ben Smith.

European airlines are upgrading their most premium options in an apparent drive for American business as transatlantic travel soars.

Last week, Air France unveiled its new first-class suite, La Première. It features both a seat and a chaise lounge, with a floor-to-ceiling curtain offering more privacy than a sliding door.

Plus, it takes up the length of five windows — 25% more space than the existing version.

La Première is set to debut later this spring on flights to New York's JFK Airport. Return tickets for next month are about $20,000.

"It's unbelievable what Americans are paying to come over here," Air France-KLM CEO Ben Smith told The Financial Times earlier this month. He referenced Paris's $2,000-a-night Le Bristol hotel, which raised prices post-pandemic as more Americans visited the French capital

Air France is just the latest European airline to invest in upgrades targeting the wealthiest fliers, setting the pieces for a potential battleground.

They all look set to prioritize flights across the Atlantic.

"The transatlantic is where the European carriers make most, if not all, of their money," Neil Glynn, a managing director at Alvarez & Marsal, told Business Insider. "They are clearly competitive with one another, and the bar is rising in terms of the level of product."

Germany's Lufthansa launched its Allegris first class last November, with floor-to-ceiling walls, 43-inch TVs, and a double bed. The day after Air France's announcement, it issued a press release showing its summer timetable will mostly target the US for first-class — flying to Chicago, San Diego, and San Francisco, plus Shanghai and Bengaluru.

Also back in November, British Airways announced a new first-class suite for its Airbus A380s, scheduled for 2026. While it hasn't yet revealed the first routes, BA's superjumbo jets mostly serve routes between London and US cities.

It's no surprise that European airlines would target their most lavish suites for the world's biggest economy, with plenty of affluent tourists and business travelers.

The European Union has some 100 million more people than the US, but its gross domestic product is nearly a third smaller. The average American salary of $80,115 is much higher than those of Europe's three biggest economies — Germany, France, and the UK.

Americans' spending power boosted European economies as transatlantic travel boomed post-pandemic. More than twice as many Americans visited Europe in August 2024 compared to five years prior, according to the International Trade Administration.

Revenue on passenger flights to North America went up 28% for both Air France-KLM and the Lufthansa Group across the same period, per their annual reports. (British Airways' owner, IAG, doesn't report regional breakdowns for these figures.)

"People locked down through COVID were using that to influence their travel patterns in the immediate aftermath, which saw phenomenal premium leisure demand in 2023," Glynn said.

US airlines are benefiting as well. United and Delta are respectively running 23% and 13% more flights to Europe compared to 2019 — while pulling in more profit per passenger.

However, long-haul first class is rare on US airlines. Delta One and United Polaris are more like business class, while American's Flagship First is only available on its 20 Boeing 777-300s.

"Naturally, there's just more money to spend in the US, it's a much wealthier economy at large," Ronan Murphy, a director at Alton Aviation Consultancy, told BI.

He added that, while major US carriers can still get a lot of bookings thanks to loyalty programs and credit cards, their premium suites have been a weaker product than those of European airlines.

"If I have money, maybe I'm going to spend a few more dollars on my trip, because what else am I working for?" he said. "And then, you look around and say 'Oh, Air France, that's way better than what I'm getting on Delta, for example, or American.'"

Instead, US airlines are betting on efficiency, such as by ordering more Airbus A321XLRs — single-aisle planes that can fly further, opening new routes to less popular cities.

In contrast, British Airways' coming first class is a distinctly plush upgrade from its current offering.

While business is typically more profitable than first, the crème de la crème could be a way for European airlines to attract the biggest spenders away from their American competitors.

"They're clearly keen to ensure that they're as competitive as they can be for the highest revenue of passenger that's available on the transatlantic," Glynn said.

The four European airlines that are bringing new suites also feature in Skytrax's top 20 for first class — compared to no American ones. Air France ranked second behind Singapore Airlines.

Asian and Middle Eastern airlines have long been the gold standard for premium travel. Now, European carriers' first class is becoming more similar to the upper echelons. Airlines are also being forced to up the luxury of first-class due to increasing standards in business class.

"There's not many carriers that are actually offering a full first-class service, but that product now needs to be at a much higher level," Murphy told BI. "They have to bring it up to a standard where they can charge the price that they need to charge for it, given that they're retrofitting or they're bringing in new aircraft."

At this level of luxury, with five-figure airfares, airlines are also competing with private jets.

"A large percentage of the customers are flying for business reasons ... many of them have the choice of a private jet or flying in first class," Smith, the Air France-KLM CEO, told Reuters.

The boom in transatlantic travel and wealthy tourists is seemingly pushing a wave of innovation that could usher in a new age of luxury flying.

Unfortunately, it won't be for everyone.