The race to capture higher-spending leisure travellers is accelerating across the US airline industry, including budget carriers, with Allegiant becoming the latest to introduce a new premium cabin offering
The Las Vegas-based ultra-low-cost airline is now offering complimentary inflight beverages, and plans to introduce a new Allegiant First cabin beginning in spring 2027
The new cabin has Allegiant firmly following the industry trend, with airlines that once competed primarily on low fares now investing in premium seating, bundled fares, and enhanced onboard services to boost ancillary revenue and attract travellers willing to pay more for comfort
Free drinks for every passenger
This month, Allegiant has begun offering complimentary beverages to all passengers, including soft drinks, juice, and water
Reinforcing the value of its branded credit card, Allways Rewards Visa cardholders are treated to one complimentary premium beverage per flight, choosing from coffee, protein shakes, sports drinks, or alcoholic drinks with a mixer valued up to $16
While complimentary drinks have long been available on most legacy carriers, they have traditionally been excluded from the ultra-low-cost model, which was designed around profitable ancillary fees charged for all extra services.
Allegiant’s decision to offer cardholders premium complimentary beverages reflects the significant contribution of branded credit cards to airline revenue.
The new free beverage policy improves the ultra-low-cost airline’s passenger experience, and sets the stage for its broader pivot to premium service.
Allegiant First introduces a true premium cabin
The biggest change to Allegiant’s model will come in spring 2027 with the launch of a new Allegiant First cabin product, the airline’s first dedicated premium cabin. While the airline has not yet revealed the seat model, it follows the basic product design of other US domestic first class seating.
Each aircraft will feature eight seats arranged in a two-two configuration at the front of the cabin.
Compared with Allegiant’s standard economy seating, passengers can expect:
- 37-inch seat pitch
- Five-inch recline
- Adjustable headrests
- Calf rests
- Additional legroom
- Enhanced onboard service
- Priority check-in and boarding
- One personal item, one carry-on bag and one checked bag weighing up to 70 pounds included in the fare
Seats are expected to go on sale in mid-August ahead of the first flights next spring
Allegiant said the new product will complement its existing Allegiant Extra economy plus seating option
Part of the Allegiant-Sun Country integration
The premium cabin also reflects the airline’s longer-term strategy following the planned integration of Allegiant and Sun Country Airlines
The company expects the new seating class and enhanced complimentary offerings to create greater consistency across the combined operation while broadening its appeal to both budget-conscious travellers and customers seeking a more comfortable leisure experience
“This is about giving customers more ways to travel with us,” said Drew Wells, Allegiant’s Chief Commercial Officer. “As we bring together two highly complementary leisure airlines, we see significant opportunity to expand complimentary and premium offerings in a way that strengthens the customer experience and supports the long-term growth of the combined company
“Travellers are increasingly looking for more comfort, more personalisation and more flexibility, and these new offerings are a meaningful step forward in delivering that.”
Premium has become the new US airline battleground
Allegiant’s announcement is the latest sign that premium leisure travel has become one of the fastest-growing segments of the US domestic market
Over the past two years, nearly every major US airline has expanded its premium offering.
Among the big three legacy carriers, United Airlines has invested heavily in premium cabins, lounges and its Polaris and Premium Plus products while introducing new premium-focused domestic aircraft interiors. Delta Air Lines continues expanding Delta One, Premium Select and domestic First Class while reporting strong demand for premium leisure travel. American Airlines has increased premium seating across its narrowbody fleet and continues to prioritise premium revenue growth
Alaska Airlines has also enhanced First Class and Premium Class while preparing to integrate Hawaiian Airlines’ long-haul premium products
Among the ultra-low-cost carriers, Frontier Airlines unveiled its own first-class-style seating, as did its now-defunct rival, Spirit Airlines
JetBlue, which has long differentiated itself with its fully lie-flat Mint premium cabin on transcontinental and transatlantic routes, recently announced plans to introduce its own US domestic first-class product, dubbed BlueFirst, on aircraft that are not equipped with Mint, later this year
For airlines, premium seating offers significantly higher margins than standard economy while appealing to travellers who may be willing to spend more on comfort without paying traditional business-class fares
Budget airlines move beyond bare seats
Allegiant built its business around offering low base fares while charging separately for extras such as bags, seat selection and onboard purchases. The introduction of complimentary drinks and a genuine premium cabin reflects an evolution in that model
While it isn’t entirely abandoning its low-cost roots, the airline is broadening its product range, allowing customers to choose between an affordable ultra-low-cost experience and a premium one
Airlines in the US and worldwide are increasingly opting for product segmentation rather than a one-cabin-fits-all approach to maximise revenue
Allegiant will announce further details on its new premium cabin product, including aircraft deployment and specific features later this year
Get all the latest air transport news here from AGN.Get all the latest air transport news here from AGN.
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