Paris‑based Air France is seeing its luxury strategy pay off, according to Chief Executive Ben Smith, who told Reuters the airline’s premium cabins have delivered solid growth despite the turbulence caused by the seven‑month‑old Iran war.
Luxury focus fuels revenue gains
Smith highlighted that Air France has leaned into the global fascination with French fashion, food and culture, even tapping the popularity of the TV series “Emily in Paris.” The carrier has upgraded its first‑class and business‑class cabins with high‑end products – caviar, champagne and menus crafted by Michelin‑starred chefs – and invested heavily in the most profitable sections of the aircraft.
“All the luxury brands are based in Paris. We have more Michelin‑starred restaurants than anywhere in the world in Paris,” Smith said while accepting an award for the airline’s first‑class cabin at a London ceremony. He added that the city’s cultural cachet makes it a natural hub for premium travel.
Affluent travelers stay on board
Despite higher ticket prices, Smith reported that the airline’s wealthiest customers have not been deterred. Some former private‑jet users are even switching to first class, seeking a more discreet travel experience without the scrutiny that private‑flight emissions attract.
Revenue from first‑class and other premium cabins has risen 11% this year, according to company data. The airline has also raised fares to offset surging jet‑fuel costs, but Smith said the price increases have not hurt demand.
Industry context
Air France‑KLM’s challenges mirror those of Europe’s other major airline groups, including IAG (owner of British Airways) and Lufthansa, which have all refreshed their first‑class products to capture growing demand from affluent U.S. travelers. The Iran conflict has added pressure through higher fuel prices and disrupted travel patterns, prompting many carriers to trim capacity and tighten spending.
Smith remains confident that Air France’s premium focus will continue to shield the airline from broader market headwinds. “We’ve raised ticket prices significantly, but it’s quite solid. It’s better than I would have expected,” he said.
Looking ahead
With the luxury segment showing resilience, Air France plans to keep investing in high‑end amenities and cabin upgrades. The airline hopes that its emphasis on French cultural appeal and premium service will sustain growth even as global uncertainties persist.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
