Core Viewpoint - Domestic airlines are enhancing their economy class offerings, particularly through the introduction of "super economy class" to attract business travelers and improve ticket revenue amidst declining passenger yields [1][4]. Group 1: Introduction of Super Economy Class - Hainan Airlines has announced the addition of super economy class on 40 of its business routes, aiming to provide a more comfortable experience for passengers [1][2]. - The super economy class features increased legroom of 4-5 inches (approximately 10.16-12.7 cm) and better reclining seats, while pricing remains at or below standard economy class fare [2][4]. - The service will include upgraded meal options, featuring regional specialties such as Hainan chicken rice and other local dishes [2]. Group 2: Competitor Developments - China Southern Airlines has also upgraded its "Pearl Economy Class" on wide-body aircraft, providing more spacious seating and improved comfort compared to standard economy class [3]. - The upgrades are part of a broader trend among airlines to enhance passenger experience and attract business travelers [3][4]. Group 3: Target Audience and Market Strategy - The primary target for super economy class is business travelers, with airlines hoping to capture this segment by offering better services at competitive prices [4][5]. - The introduction of super economy class is seen as a response to stricter corporate travel policies, which may lead to increased demand for this class as a substitute for business class [4][6]. Group 4: Financial Implications - Airlines are facing challenges with declining passenger yields, as evidenced by significant drops in revenue per passenger kilometer reported by major carriers [7]. - Hainan Airlines is projected to incur losses between 850 million to 1.25 billion yuan due to intensified market competition and foreign exchange losses [7]. - Despite these challenges, there are signs of recovery in business travel demand, which could enhance the revenue potential of super economy class offerings [8].