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Aircraft Interiors Industry Update: Growth in Premium Economy, Sep–Oct 2025

Aircraft Interiors Industry Update: Growth in Premium Economy, September–October 2025
The latest report from CAPA – Centre for Aviation provides an in-depth analysis of the aircraft interiors sector during September and October 2025, drawing on comprehensive data from the CAPA Aircraft Interiors Database and CAPA News. This period is characterized by significant expansion in premium economy cabins, evolving airline strategies, and persistent industry challenges amid a complex economic environment.
Expansion of Premium Economy Cabins
Over the past decade, premium economy has emerged as a pivotal segment within aircraft interiors, now installed on approximately 45% of the global widebody fleet—more than double its presence ten years ago. This growth underscores a strategic shift among airlines, which increasingly view premium economy as a vital revenue stream. The cabin appeals to both economy and business class passengers, offering enhanced comfort without significantly cannibalizing business class sales. Reflecting this trend, premium economy has become a standard feature on new widebody aircraft deliveries, comprising over 60% of such aircraft introduced in the last five years.
Regional Adoption and Market Entrants
North America and Europe remain at the forefront of premium economy adoption, with North American carriers outfitting nearly 90% of their widebody fleets with this cabin class. Leading airlines such as KLM, SWISS, and United Airlines are actively expanding their premium economy seat inventories and upgrading product offerings to meet growing passenger demand.
In the Asia-Pacific region, major airlines are entering the premium economy market with renewed vigor. Korean Air and Thai Airways have announced plans to introduce premium economy cabins, with Korean Air undertaking a retrofit of 11 Boeing 777-300ER aircraft. This retrofit features a 2-4-2 seating configuration based on the Safran Z535i seat. However, the rollout faces scrutiny amid Korean Air’s ongoing merger with Asiana Airlines, adding complexity to the implementation process.
Latin American and North American carriers are also embracing the trend, with LATAM and Alaska Airlines preparing to launch or expand their premium economy products, signaling a broadening global footprint for this cabin class.
Industry Challenges and Competitive Landscape
Despite strong demand, the aircraft interiors sector continues to grapple with macroeconomic headwinds that challenge sustained production growth. Recaro Aircraft Seating’s achievement of double-digit production increases in 2025 stands out as a notable exception, demonstrating resilience in a difficult economic climate. The competitive environment is intensifying as airlines and suppliers vie for market share in premium economy seating, with companies like Ethan Allen reporting positive results that highlight the sector’s robustness and the increasing importance of premium cabin products.
Strategic partnerships have become a critical response to these pressures. Aerospace Technologies Group’s recent agreement to supply window shades for Emirates’ Boeing 777-300 fleet upgrade exemplifies a broader industry trend toward collaboration and innovation in cabin retrofits and enhancements.
Global Interior Upgrades and Outlook
Recent months have witnessed a surge in new seat installations, in-flight connectivity enhancements, and comprehensive cabin refurbishments across multiple regions. Airlines are investing heavily in differentiated products to drive incremental revenue and improve passenger experience, reinforcing premium economy’s role as a cornerstone of airline strategy.
Looking ahead, the aircraft interiors industry is positioned for continued growth as airlines further segment their cabins and prioritize premium offerings. However, sustaining this momentum will require navigating economic uncertainties, fostering innovation, and leveraging strategic partnerships to meet evolving passenger expectations.

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