SEOUL- Korean Air (KE) has halted its $215 million program to refit 11 Boeing 777-300 aircraft with Premium Economy seating. The decision follows strong regulatory concerns and widespread public criticism of the cabin overhaul.
The Seoul-based airline, headquartered near Incheon International Airport (ICN), had already retrofitted one Boeing 777-300 before announcing it would suspend the rest of the project.
Photo: By Minseong Kim – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=37261696Korean Air Halts $215 Million 777 Refit
The project was designed to install 40 Premium Economy seats on each of Korean Air’s 11 Boeing 777-300 aircraft. To accommodate this, the airline planned to densify its Economy Class from a 3-3-3 to a 3-4-3 layout, matching other international carriers.
According to PYOK, the $215 million investment aimed to position Korean Air competitively against rivals that had already modernized their cabins with Premium Economy.
Premium Economy was first introduced more than 30 years ago, in 1992. Debate continues over whether Taiwan’s EVA Air (BR) or Virgin Atlantic (VS) pioneered the concept, but both are credited as early innovators.
Other airlines, including British Airways (BA) and Japan Airlines (JL), quickly embraced the product. Some carriers dismissed it initially, fearing it would cannibalize Business Class revenue.
However, the popularity of Premium Economy grew steadily, with Emirates (EK) only joining in 2021 after recognizing that most customers were upgrading from Economy rather than downgrading from Business.
Korean Air, like Emirates, was among the late adopters, but its attempt to follow the trend has now collapsed.
Photo: By Hyeonwoo Noh – http://www.airliners.net/photo/Korean-Air/Airbus-A380-861/2515862/L/, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=38818177Regulatory Challenges
The Korea Fair Trade Commission (FTC) raised concerns that Premium Economy could violate the terms of Korean Air’s merger with Asiana Airlines (OZ).
As part of regulatory concessions, Korean Air pledged not to raise fares on 40 key routes.
The FTC argued that introducing a higher-priced Premium Economy cabin was effectively a fare increase on protected routes, even if Economy pricing remained unchanged. This warning was a major factor in Korean Air’s decision to stop the refit.
Photo: BoeingPassenger and Lawmaker Backlash
Beyond regulatory objections, passengers and lawmakers strongly opposed the plan. Korean Air had long resisted densifying its Boeing 777 Economy cabins, maintaining the original 3-3-3 configuration instead of moving to the narrower 3-4-3 layout.
The refit would have ended this practice, reducing seat width and aisle space in Economy to make room for the new Premium Economy section.
Many passengers saw this as a downgrade in comfort, while lawmakers accused the airline of prioritizing profits over customer experience.
Photo- 74777; GoodFon.comFuture Outlook
The only refitted aircraft will remain in operation on the Seoul (ICN)–Singapore (SIN) route.
However, the rest of the Boeing 777-300 fleet will not receive the Premium Economy upgrade, and the airline has not confirmed future cabin plans.
The suspension illustrates the challenges airlines face when balancing innovation, regulatory compliance, and passenger satisfaction.
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Korean Air Premium Class Launch Raises Economy Comfort Concerns
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