By Osmund Agbo
“Despite advancements in technology that have made flights more efficient and reduced costs, the passenger experience has deteriorated. Seats have become smaller, legroom more cramped, and complimentary services increasingly rare. What used to be standard comforts are now often considered luxuries, available only for an additional fee.”
I can still recall, with striking clarity, my first flight to the United States from Nigeria on a crisp January day in 2001. It was more than just a journey; it was a leap into the unknown, leaving behind the familiar warmth of home for the vast, uncharted territories of a new world. The journey began on a Boeing 787 Dreamliner operated by Royal Dutch Airlines, KLM, which took us from Murtala Mohammed International Airport in Lagos, through Amsterdam, and finally touched down at Chicago O’Hare Airport. That flight, though, was an experience in itself—an era where air travel felt like a privilege rather than a transaction.
The seats were generously spaced, allowing for comfort on the long journey. The flight attendants were gracious, treating us with a level of hospitality that made us feel truly like valued guests and not just mere passengers.
Every detail, from the pristine restrooms to the in-flight dining experience that offered culinary options which could easily rival those curated by Wolfgang Puck, reflected an era when passengers comfort mattered. Those were the good old days.
But am I simply falling into the common human habit of romanticizing days gone by? Were they really better? How could they be, without the conveniences of the World Wide Web, without smartphone apps that simplify our lives in ways we couldn’t have imagined back then? How could a time when shopping meant hours of trudging from store to store be better than today, when we can browse the world’s offerings from our beds with just a few taps on a screen?
And yet, despite all these advancements, something essential feels lost. There’s a pervasive emptiness, a longing for a time when things felt more meaningful, more human. It’s this undercurrent of dissatisfaction that drives us to look back with nostalgia.
Over the past few decades, technology has revolutionized the global economy, enabling unprecedented levels of wealth creation. Automation, artificial intelligence, and the internet have driven productivity to new heights, creating billion-dollar industries and making it easier than ever to generate and accumulate wealth. In theory, such advancements should lead to improved services and greater convenience for consumers. Yet, paradoxically, in many cases, the opposite seems to be true. There is still so much poverty all around us at a level that is unconscionable.
Basic conveniences in several service sectors has been on the decline. The airline industry is a prime example of this paradox. The in-flight complimentary dining experience today is a mere shadow of its former self, reduced from full-course meals on international flights like the type I had with KLM to a disappointing caricature. Where passengers once enjoyed thoughtfully crafted menus with multiple courses, they are now offered uninspiring, pre-packaged snacks. On domestic flights, the decline is even more pronounced—what used to be a hot meal is now often just a packet of pretzels and a small glass of soda, even on four-hour journeys.
Despite advancements in technology that have made flights more efficient and reduced costs, the passenger experience has deteriorated. Seats have become smaller, legroom more cramped, and complimentary services increasingly rare. What used to be standard comforts are now often considered luxuries, available only for an additional fee.
Wages have also stagnated in recent years. In the United States for example, the Bureau of Labor Statistics data highlights the severity of this issue: Adjusted for inflation, average weekly nonsupervisory wages—a key measure of blue-collar earnings—were actually higher in 1969 than they are today. Meanwhile, executives’ earnings have skyrocketed. This phenomenon begs the question: why are all these happening at a time when output and productivity are at an all-time high.
One of the primary reasons for the reduction in passenger comfort and amenities is the profit-driven nature of the airline industry. Airlines operate on slim profit margins and are constantly seeking ways to cut costs and increase revenue. Over the years, many airlines have adopted a “low-cost carrier” model to compete with budget airlines, which often means stripping down services to the bare minimum and charging extra for any additional perks.
This model has proven profitable for airlines, as they can maximize the number of passengers per flight while minimizing costs. However, this drive for profit maximization has led to a decline in customer experience. The reduction in seat space is a direct result of airlines attempting to fit more passengers into each plane. This practice, known as “densification,” allows airlines to increase their load factor, or the percentage of seats filled on each flight, thereby maximizing revenue.
Meanwhile, the reduction in complimentary services, such as meals and snacks, is another cost-cutting measure. By offering fewer free amenities, airlines save money and can encourage passengers to purchase food and beverages onboard, further boosting their revenue.
Despite these cost-cutting measures, it is not entirely accurate to say that airlines are struggling financially. In fact, many airlines have reported significant profits in recent years, particularly before the COVID-19 pandemic. The focus on profit maximization is less about financial survival and more about increasing returns for shareholders and executives.
Airlines, like many corporations, are under constant pressure to deliver short-term financial results to satisfy investors.
This pressure can lead to a focus on cost-cutting and revenue-boosting strategies that enhance profitability but at the expense of customer comfort and experience. Additionally, executive compensation in the airline industry, as in many other sectors, is often tied to financial performance metrics, such as stock price and profit margins. This creates an incentive for executives to prioritize profitability over customer satisfaction, as their bonuses and compensation are directly linked to these financial outcomes.
The decline in passenger comfort and amenities in the airline industry and stagnation of wages are indicative of a broader trend across many sectors, where the drive for profit maximization often comes at the expense of public good. Per a recent report from the Institute for Policy Studies published in the New York Times, it reveals that the C.E.O. of Live Nation Entertainment, a concert company, earned $139 million in 2022-5,414 times as much as his firm’s median of $25,673.
The report also highlights that since 2020 at Dollar Tree, a store where many struggling Americans shop and work, prices have risen, average worker pay has decreased, and the C.E.O.’s stock holdings have surged in value by over 2,000 percent.
This trend raises important questions about the role of corporations in society and the extent to which they should be allowed to prioritize profits over people.
The focus on short-term financial gains and shareholder value has led to a situation where the needs and preferences of consumers are often secondary considerations.
The decline in passenger comfort and amenities and workers not receiving liveable wages is not solely a result of corporate greed; regulatory oversight—or the lack thereof—also plays a crucial role. In theory, government agencies and lawmakers are supposed to protect workers and consumers from unfair practices and ensure that industries operate in the public’s best interest. However, in practice, the influence of corporate lobbying has often resulted in regulatory bodies that are more sympathetic to industry interests than those of consumers.
Lobbying is a powerful tool that industries use to influence legislation and regulation in their favor. In the case of the airline industry, lobbying efforts have often focused on preventing the imposition of stricter regulations that could impact profitability. For example, airlines have successfully lobbied against proposed regulations that would mandate minimum seat sizes or require more transparency in pricing and fees. As a result, consumers are left with fewer protections and less recourse when faced with declining service quality and increased costs.
The paradox of technological advancement and wealth creation coinciding with a decline in basic conveniences is a reflection of the broader dynamics at play in the global economy. While technology has enabled greater efficiency and wealth generation, it has also facilitated a corporate culture that prioritizes profitability above all else. This culture, combined with weak regulatory oversight and the influence of corporate lobbying, has led to a situation where consumer welfare is often sacrificed for financial gain.
To address this issue, there needs to be a recalibration of the balance between profit and consumer welfare. Regulatory bodies must be empowered to enforce stricter consumer protection standards, and there should be greater transparency in corporate practices. Additionally, companies must recognize that long-term success is not solely measured by financial metrics but also by their ability to provide value and satisfaction to their customers. Only by striking this balance can we ensure that the benefits of technological progress and economic growth are truly shared by all.
*Dr. Agbo is the author of Black Grit, White Knuckles: The Philosophy of Black Renaissance and a fiction work titled The Velvet Court: Courtesan Chronicles.
