Both airlines have built out large cabins rather than treating premium economy as an afterthought. Virgin Atlantic's premium economy sections range from 35 to 56 seats depending on aircraft, while Air New Zealand installs up to 54. Some rankings place Virgin Atlantic's product as the best premium economy offering in Europe, citing its service and catering. Air New Zealand's cabin draws praise for seat pitch of 38 to 42 inches and consistency of service.

The appeal comes down to the price gap with business class. On the New York to London route, a business class ticket can run three to four times the cost of premium economy. Corporate travel budgets have tightened since the COVID-19 pandemic, pushing some business travelers who once flew business class toward premium economy instead. Price-sensitive leisure travelers are making the same move from the other direction, trading up from economy for the extra space and better catering.

That squeeze from both ends has made premium economy the most profitable cabin for airlines on a square-footage basis, per the article. The seats themselves sit between the two classes they're wedged against: wider and with more recline than economy, but still arranged six-abreast on Boeing 767s and eight-abreast on Airbus A350s, compared with four-abreast in business class. There are no fully flat beds, no lounge access and none of business class's wider amenities.

The article cautions that the value proposition breaks down when premium economy is priced too close to business class, narrowing the gap travelers are paying to avoid. It expects increased supply from cabin retrofits across the industry to bring prices back down to levels that preserve that gap.