Airlines Are Auctioning Seats Rather Than Upgrading Loyal Passengers

As airlines profits increase, carriers have stopped giving away so many first class, business class, and premium economy seats, preferring to sell them, sometimes at discounted rates. But while they have been creative in monetizing premium cabins, many carriers have avoided auctions, perhaps thinking travelers might be turned off by the process, or that they can earn more revenue in other ways. That's beginning to change, mostly outside of the United States, but also at Hawaiian Airlines, which recently announced it would work with a company called PlusGrade to manage auctions for unsold first class seats, and at Virgin America, which works with PlusGrade and another company called SeatBoost. Neither Hawaiian nor Virgin America offers as many free upgrades as American Airlines, Delta Air Lines, and United Airlines, so auctions allow them to profit from seats that might otherwise go empty. "It's not something that is earth-shattering and material to the financial results,