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Trim said Virgin’s Economy X was loosely termed a “poor man’s business class”, in part because people could pay a $60-$100 difference for a seat roughly equivalent to business class.
More broadly, Virgin, which has roared back into the market as an ASX-listed competitor, has embarked on a strategy of upselling customers on various extras and options – including bringing pets on board – as a way to increase revenue.
In a market update on Friday, Qantas noted that non-mining “corporate demand continues to grow but at a slower rate than previously forecast.”
Qantas’ long-haul fliers now have an incentive to pay more for international trips, so they can reap the benefit of automatic Economy Plus seating in the domestic market, Trim said.
Many corporate travel policies prohibit business class travel domestically. That has encouraged corporate travellers to look to services such as Virgin’s Economy X.
Qantas’ lower-tiered Frequent Flier customers will be able to purchase the seating.
Virgin, which has roared back into the market as an ASX-listed competitor, has embarked on a strategy of upselling customers on a variety of extras and options.Credit: Luis Enrique Ascui
Signage on overhead bins will indicate what space is reserved for the Economy Plus passengers. The A321XLRs will feature 36 Economy Plus seats, the smaller A220s will have 20, while the 737s will have 48.
High-tiered members “will receive complimentary access to Qantas Economy Plus, enhancing the benefits available to them”, the airline said.
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Trim said Qantas domestic fares tended to be significantly higher than Virgin – and Qantas was likely leaking some of that business to Virgin.
Meanwhile, Virgin has brought domestic business class prices down through its Economy X product, Trim said.
Giving complimentary access to roomier seats for platinum fliers could justify some of Qantas’s higher fares, he said.
Pricing will be announced closer to the February 2026 launch.
The Qantas announcement aligns with the airlines seeking to upgrade their offerings in pursuit of higher profits.
Swinburne Department of Aviation associate lecturer Salim Hijazeen said: “The updates show Qantas are keen on the product given that it’s rolling out to the 737s too not just the A321 and A220s.”
“It just makes me think how many years will the 737s remain in the fleet? Especially with some 737s [being] approximately 24 years old.”
“The challenge would be pricing. Hopefully, it’s reasonably for the everyday traveller,” he said.
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