Air France luxury bet pays off as premium revenue rises 11% amid Iran war

  • Air France expanded luxury offerings as the Iran war disrupted global airline travel.
  • Premium and first-class revenue increased 11%, according to Air France company data.
  • Ben Smith said affluent customers continued booking premium cabins despite higher fares.

Air France is relying on Paris’s luxury appeal and expanded premium offerings to withstand the nearly seven-month-old Iran war, which has increased jet-fuel costs and disrupted travel patterns worldwide. Chief Executive Ben Smith said bookings and revenue have grown across premium, business and first-class cabins despite higher fares. Company data show revenue from first-class and premium travel rose 11%. The carrier has promoted Paris through its connection with the TV show "Emily in Paris," upgraded onboard menus with luxury-branded products and invested in its most profitable cabins. Smith said affluent U.S. travelers continue to spend, with some former private-jet users choosing first class amid scrutiny over private aviation’s higher emissions. Air France won an award for its first-class cabin at a London ceremony, while Smith said inflation in the United States had not weakened premium demand.

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