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First class air travel is getting an upgrade, with more privacy, larger fold-out beds, and more space for passengers and their belongings. 

The big picture: The rise of premium leisure travel is one of the biggest trends to come out of the pandemic. Airlines are catering to this new class of traveler by investing in expanded cabins, more comfortable seats and fancier airport lounges.

Here's one vision for the first class cabin of the future, from Teague, a Seattle-based design firm:

Its "Elevate" concept is an expansive private suite with a larger fold-out bed, more floor space, customized lighting and more stowage capacity.

All the extra space is possible because of a novel design twist: The furniture is mounted to the plane's sidewalls (instead of the floor) using lightweight, composite braces designed by NORDAM, a big supplier to the aerospace industry. 

Why it matters: Airlines are increasingly using smaller, more efficient aircraft for long-haul flights. But that can leave first class passengers feeling a little cramped. 

By eliminating fixed structures, Teague's "floating" design allows for a more expansive, home-like environment, even on narrow-body, single-aisle jets.

There's an added benefit for airlines: The lightweight structures make flights more fuel-efficient.

What to watch: No word on when the design might show up on your next flight, but Boeing is an innovation partner of Teague.

Image of a single-aisle aircraft with a new design for first class cabins. 

First class cabin offers privacy, even on single-aisle jets. Photo courtesy of Teague 

What's next for first class air travel: floating beds

Airlines are catering to premium leisure travelers.

Image of a novel design for a first-class airline passenger suite

How first class air travel could look in the future. Photo courtesy of Teague

Air travel

Transportation

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Delta Air Lines, United Airlines and American Airlines said that they would allow some passengers who were banned from their flights due to mask violations to board their planes again on a case-by-case basis, CNN reports.

Why it matters: The move comes days after a federal judge struck down the federal mask mandate for travelers, causing several major airlines to lift their own mask requirements.

Details: Despite the restoration of flight privileges for many, customers who remain on Delta and American's permanent no-fly list will stay there. 

These include people whose incidents with mask violations escalated into assault.

United said in a statement to CNN that it would also allow some customers to return after "ensuring their commitment to follow all crewmember instructions on board."

The big picture: The Federal Aviation Administration (FAA) has recorded 1,233 reports of unruly airline passengers as of this past Tuesday. These included 797 mask-related incidents.

The FAA said Wednesday its "zero-tolerance policy" toward unruly passengers will be made permanent.

3 U.S. airlines will let some mask violators return to their flights

Delta, American and United said they would make these decisions on a case-by-case basis.

Photo of a Delta airplane about to lift off in the background as a United airplane's tail is seen in the foreground of an airport

A Delta Airlines plane takes off at Reagan National Airport in Arlington, Virginia on Dec. 24, 2021. Photo: Eric Lee/Bloomberg via Getty Images

Airlines

Coronavirus

The U.S. faces a range of health care flashpoints — unaffordable drugs, opioids, vaping — as we debate whether to adopt universal care. For now, the Affordable Care Act is the law of the land, but Republicans want to issue it a final death blow.

Health

Axios Generate

Beta Technologies, a Burlington, Vermont-based electric aviation company, announced the close of a $375 million Series B funding round on Wednesday, bringing total venture funding for the maker of electric vertical takeoff and landing aircraft (eVTOL) to nearly $800 million.

Why it matters: Beta aims to achieve FAA certification by 2024 and transform the short-range cargo delivery market, from transporting organs to patients to making last-mile and regional cargo deliveries.

The big picture: The funding, led by TPG Rise Climate and Fidelity Management & Research Company, will allow Beta to continue to hone its technology.

The company's aircraft prototype, currently in flight testing, is the dragonfly-like ALIA-250. It can carry up to 1,400 pounds of cargo, or five people plus a pilot.

The plane needs less than an hour to charge after a full mission, the company said in a statement, and on three battery packs (it can hold up to five), the max flight duration is about two hours.

The company is also making a charging network that works for its planes and for electric vehicles.

United Therapeutics, a biotech company founded by Beta director Martine Rothblatt, plans to use the aircraft and chargers for moving manufactured and repaired organs for human transplantation.

The initial charging network includes Bentonville, Arkansas, home to Wal Mart's headquarters. Because the planes take off and land vertically, the stations are not limited to traditional airports.

By the numbers: UPS has ordered 10 aircraft with an option for 140 more. It has also reserved the right to buy Beta's charging stations and sees eVTOL as a way to improve service to smaller markets while reducing its emissions.

Beta's eVTOLs can fly up to 250 miles at 170 mph on a single charge, or about 50 miles further than the distance between Washington, D.C., and New York City.

Blade, a helicopter charter service, ordered five of the ALIA aircraft, with an option for up to 20, for use in transferring passengers between airports or along commuter routes.

The U.S. Air Force is also evaluating Beta's aircraft for its use.

Yes, but: The company has competition in the eVTOL space, several of which went public for financing. These include Lilium Air Mobility, Joby Aviation and Archer Aviation.

Beta stands out for relying on VC funding and institutional investors and focusing on the cargo segment.

Elroy Air, which has raised $50 million, is a competitor in the cargo sector.

Our thought bubble, from Axios transportation correspondent Joann Muller: It's easy to see how electric cargo planes with vertical takeoff and landing capabilities could help companies like FedEx, Amazon and Walmart shuttle goods among warehouses more safely and efficiently.

The trick is balancing the tradeoffs between payload and power. Batteries are bulky and heavy, and they suck a lot of energy just taking off and landing. That cuts down on their flying range and the amount of cargo they can carry.

Editor's note: This article has been updated to clarify that Beta Technologies stands out for relying on institutional investors and VC funding.

Electric aviation startup Beta Technologies raises $375 million

The company is pursuing eVTOL planes and a charging network that can scale.

An ALIA aircraft from Vermont-based Beta Technologies. Photo courtesy of Brian Jenkins/BETA Technologies

Aircraft

Climate change

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

Monday's court ruling striking down the federal traveler mask mandate was met with mixed reactions as companies scrambled to respond.

Driving the news: Several airlines — including the four largest in the U.S. — Uber, Lyft and Amtrak dropped their masking requirements following the Transportation Security Administration's announcement that it will no longer enforce a mandate. 

Other transit services did not take immediate steps and say they're awaiting further guidance from the government.

State of play: United, American, Delta and Southwest Airlines all announced that mask requirements would be suspended in the U.S., and on select international flights, effective immediately.

JetBlue Airways said Monday evening that masks would be optional in the U.S.

Face masks are also now optional onboard all Alaska Airlines and Horizon Air.

Uber announced Tuesday that riders and drivers are not required to wear masks, though it stressed that the Centers for Disease Control and Prevention still recommend them for people with certain risk factors or those living in areas with high transmission levels.

Lyft announced Tuesday that masks will be optional for both riders and drivers, and that Lyft rules will no longer require that the front seat be kept empty or that the windows remain open. Riders and drivers will still be able to cancel rides if they wish, but health safety reasons like no masks will no longer appear as a cancellation option. 

Amtrak also announced that passengers and employees are no longer required to wear masks while onboard trains or in stations.

Meanwhile, several leading transport agencies in key U.S. cities said they would not make any immediate changes to mask requirements. These include:

 The Chicago Transit Authority and the city's commuter rail system Metra.

The Metropolitan Transportation Authority, which operates New York City buses and subway trains, along with two commuter rail services.

The Los Angeles County Metropolitan Transportation Authority and the Los Angeles Department of Transportation.

Worth noting: During the pandemic, airlines have struggled to process unruly passengers; many of these disruptive incidents begin due to  travelers' refusal to adhere to the mask mandate. 

Editor's note: This article has been updated with announcements from more airlines and transportation companies. 

How companies are responding to traveler mask mandate ruling

Uber and Lyft announced Tuesday that riders and drivers are not required to wear masks.

Photo of a masked person walking toward an automatic glass door that has a sticker saying "Face coverings required"

The Ronald Reagan Washington National Airport in Arlington, Va., on April 14. Photo: Ting Shen/Xinhua via Getty Images

Travel

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

Percentage of 2019 travel spending that companies expect to reach in each quarter

Data: Deloitte Consumer Industry Center; Chart: Baidi Wang/Axios

Many companies had been limiting corporate travel because of health concerns and travel restrictions. Now there are new worries about the soaring cost of travel and its impact on businesses' much ballyhooed climate commitments.

Why it matters: Unlike leisure travel, which is now roaring back, business travel is at least two years from a full recovery, according to new research from Deloitte. 

Driving the news: Many companies are summoning workers back to the office after two years of remote work.

Long-delayed team meetings have been rescheduled and conferences are slowing shifting back from online to in-person events.

All of that is likely to mean a gradual uptick in corporate travel over the remainder of 2022, according to Deloitte's annual survey of 150 corporate travel managers. 

But it will be a slow recovery. Travel spending is expected to rise from about 36% of 2019 levels in the second quarter to 55% of pre-pandemic spending by the end of the year, Deloitte says.

 Travel to Europe will bounce back close to 2019 levels, but Asia and Latin America will continue to lag far behind.  

Between the lines: Companies are reassessing and reprioritizing when and why employees travel. 

Many bosses are keen to maintain the financial savings and climate benefits they saw during the pandemic when employees worked from home and corporate travel was limited.

Three in 10 companies expect sustainability to cause a 11%–25% reduction in travel budgets by 2025. 

Plus, there are risks that could depress business travel, including new COVID-19 variants and the war in Ukraine.

Corporate travel recovery snagged by new concerns

First there was COVID. Now come fresh worries about the costs and climate impact of business travel.

Rivian, the most promising automotive startup since Tesla, has exquisite timing: It's ramping up production of game-changing electric pickup trucks and delivery vans just as gas prices are soaring and people are looking for alternatives to fossil fuels.

Yes, but: Rivian's vehicles are also launching into the teeth of unprecedented, industrywide supply chain disruptions that could delay or derail the company's ambitious growth plans.

Why it matters: Whether his timing is perfect, or terrible, Rivian CEO RJ Scaringe's challenge is getting a new electric vehicle brand off the ground while supplying 100,000 promised delivery vans to his company's largest customer and one of its biggest shareholders — Amazon.

Already, Rivian has conceded that its inexperience is hurting efforts to secure precious semiconductors. 

The microchip shortage, along with other supply-chain constraints, prompted Rivian to cut its 2022 production targets in half, to just 25,000 vehicles.

The 39-year-old Scaringe, heralded in a 2020 Forbes cover story as Elon Musk's new nemesis, is getting a taste of the kinds of growing pains that the Tesla CEO famously lamented as "production hell."

The big picture: Manufacturing glitches can make new model launches treacherous for any carmaker, especially an inexperienced startup.

Rivian's challenge is even steeper: it's trying to launch four models almost simultaneously — a pickup, an SUV and two delivery vans.

Scaringe seemed to take all these pressures in stride last week, however, as he drove me in a golf cart around Rivian's 3.4-million-square-foot assembly plant in Normal, Illinois — formerly home to a joint venture between Chrysler and Mitsubishi.

Details: With the flat brim of his Rivian cap pulled low, Scaringe frequently leapt off the cart to offer a closer look at the company's expanding manufacturing operations:

The six giant stamping presses where aluminum and steel parts are loudly formed.

The automated body shop where scores of robots weld, rivet and glue auto parts together.

The pristine paint shop, where trucks and vans do somersaults through a series of giant paint baths.

The final assembly area, split in two — one line for Rivian trucks and SUVs, another for Amazon's vans — where items like seats, dashboards and steering wheels are added.

The supply chain challenges of the past year have been more pronounced than he expected, Scaringe says, acknowledging some frustration: "We have a plant with 5,000 people but we need the parts here to support it."

Microchip manufacturers are allocating shipments based on their customers' historical production volumes, he said. That hurts Rivian, which only recently started manufacturing vehicles.

"I’m on the phone with semiconductor supplier CEOs every day," he says, trying to convince them Rivian will produce the number of vehicles it says it will. 

"It's a day-in, day-out battle for allocation and the number we get is precisely equal to the number of vehicles we build."

The intrigue: Rivian's inexperience may be a disadvantage now, but Scaringe is looking to establish a track record that will secure long-term partnerships with critical EV component makers. 

"Suppliers are trying to figure out who are going to be the dominant players 10 years from now, so they want to build relationships [with companies] that are going to represent significant slices of market share," he explains.

"A year ago, we were less proven. Today, we’re at the very top of the list, and where we're not at the top, we’re working very hard to get there."

The bottom line: Rivian delivered a grand total of 920 vehicles in 2021 and has 83,000 customer "pre-orders" in hand. 

It's not clear how patient those customers will be, given that other electric pickups from GM and Ford are hitting the market now.

Meanwhile, Amazon, an expert in fast delivery, is still waiting for its vans. 

Rivian opportunity at risk

Electric truck manufacturer battles against supply chain problems to meet soaring EV demand

Image of Amazon electric delivery vans coming off the assembly line at Rivian's factory in Illinois. 

Amazon electric delivery vans coming off the assembly line at Rivian's factory in Illinois. Photo: Joann Muller/Axios

Rivian

Electric vehicles

Auto shows are back after a two-year pandemic hiatus, but these days they're focused less on gleaming new models and more on educating consumers about the electric future. 

Why it matters: Consumers face a steep learning curve when it comes to electric vehicles, and so far, carmakers and their dealers have done a lousy job explaining important issues like battery efficiency, driving range and charging.

Driving the news: The New York International Auto Show, postponed four times since April 2020, finally opens to the public this weekend.

There are fewer splashy displays than in past years, with many brands skipping the show altogether.

But there's also a much bigger emphasis on vehicle electrification and charging, with several opportunities for consumers to ride in an EV on indoor test tracks.

For many people, it's likely to be their first hands-on experience with an electric vehicle. 

What they're saying: "If you haven't been paying attention to cars for the past five years, there's a lot more to learn," IHS Markit analyst Stephanie Brinley tells Axios. 

Besides new electric power trains, cars are also loaded with new assisted-driving technologies that will take some getting used to, she said.

A lot of people are curious about EVs, but to help speed adoption, companies need to ease their anxieties about going all-electric, said Steve Center, chief operating officer of Kia America. "This is where people get their questions answered."

Details: Almost the entire lower level of the Jacob K. Javits Convention Center is dedicated to electric vehicles and charging. 

On the indoor test track, visitors can ride shotgun with professional drivers in new EVs from Chevrolet, Kia, Nissan, Volvo and EV startups INDI and VinFast. (The visitors aren't allowed to drive the cars themselves.)

Ford and Hyundai have incorporated short EV test tracks into their own displays.

There's even a micromobility track dedicated to trying out e-bikes and e-scooters.

A number of charging companies also have informational displays about charging.

Among them is Gravity Mobility, developer of a high-powered, urban fast-charger for cramped public garages. Its first 24-plug charging hub is opening this spring in midtown Manhattan.

The big picture: Carmakers still make most of their profit from gasoline-powered automobiles, but most of their investments are going toward battery-electric vehicles.

That makes auto shows particularly awkward, as companies try to keep the excitement going for their conventional cars while attempting to lure shoppers into the future.

What to watch: "There’s no question that 2035 or 2040 is going to be all-electric, without a doubt," says Bob Carter, executive vice president of sales for Toyota Motor North America. "The question is, how long is the transition period going to take? Is it a three-year transition or a 15-year transition?"

Toyota is betting on a longer transition, which is why it's still promoting a full lineup of hybrids and plug-in hybrids for people who aren't ready to take the all-electric plunge.

The bottom line: Auto shows have always been about peering into the future, never more so than now, on the cusp of an electric revolution. 

Auto shows tackle steep learning curve on EVs

Some visitors will be riding in one for the first time.

The electric vehicle test track at the New York auto show. 

Consumers will be able to ride in half a dozen electric vehicles on an indoor test track at the New York Auto Show, which opens this weekend at the Javits Center. Photo: Joann Muller

Automobiles

Axios Cities

Percentage change in pedestrian fatalities per 100k people

Data: Governors Highway Safety Association; Chart: Kavya Beheraj/Axios

As lockdowns eased in the second year of the pandemic, the number of people struck and killed by drivers rose in many states, according to a new report by the Governors Highway Safety Association.

Driving the news: Pedestrian fatalities increased in all but 11 states during the first six months of 2021 compared with the same period of 2020, with 3,441 people killed while they walked near roadways.

Fatalities were up 17% for the first half of 2021 compared with 2020, the report said.

Why it matters: The Governors Highway Safety Association (GHSA) says that its "Safe System" approach to traffic safety could make a big dent in the problem.

The approach — which helped reduce road deaths in Australia by 47% and in Spain by 80% — envisions "creating a transportation system that accommodates human mistakes and keeps impacts on the human body at survivable levels," the GHSA says.

The association's five-step system involves educating consumers about everything from driver impairment to seat belts, enforcing speed limits and road safety measures, and investing in post-crash care.

Details:  Thirty-nine states and the District of Columbia had increases in pedestrian fatalities during the period studied, while only 11 states had decreases. 

The states with the biggest increase in the number of pedestrian deaths were Florida, South Carolina, Georgia, Texas and New York. 

The states with the biggest increase in the percentage of pedestrian deaths were Vermont, Maine, Wyoming, South Carolina and Massachusetts. (Because states vary widely in population, just a small shift in fatality numbers can represent a large change in percentages.)

Connecticut saw the largest drop in number (-11), followed by North Carolina (-10) and Kansas and Missouri (-8).

Nebraska saw the largest percentage drop (-67%), followed by Connecticut (-39%) and New Hampshire (-38%). 

Silver lining: Hawaii, Nebraska and Virginia had "two consecutive years of declines in pedestrian fatalities in the first half of the year, while Connecticut and North Carolina both experienced double-digit declines," per the report.

Thomas Wheatley's angle from Axios Atlanta: Most roads in Georgia and metro Atlanta are designed to move cars as quickly and efficiently as possible, a choice by local and state governments that puts pedestrians and cyclists at great risk for serious injuries or death.

Pedestrian fatalities rose post-pandemic lockdown

Most states saw more pedestrian deaths in the first six months of 2021.

Deaths

After two years of pandemic-related cancellations, Americans are splurging on "revenge travel" to make up for lost time, treating themselves to premium airfares, nicer accommodations and longer stays.

Why it matters: Even though inflation is making everything more expensive — and there's the risk of a widening conflict in Europe — travelers nevertheless are tired of putting their plans on hold and are seeking retribution against COVID-19 and its grip on their lives.

"People are saying, 'Let's pull the trigger and travel for real this time,'" says Brian Kelly, CEO of The Points Guy, a travel advisory site. 

Driving the news: Nearly nine out of 10 Americans (85%) are expecting to travel this summer, according to the U.S. Travel Association.

Nearly half (48%) plan to take two weeks or more off, the group says. 

AAA reports that 2022 travel bookings are off to a much stronger start compared with this time last year, while the CEO of Expedia Group predicts this summer will be "the busiest travel season ever.”

New York, Las Vegas and Orlando, Florida, are popular, along with London, Paris and Cancun, Mexico. 

National parks are popular too, so much so that many, including Yosemite, are now requiring reservations to enter. 

People aren't just traveling more, they're spending more too. And why not?  Many people are feeling flush after hunkering down for the past two years. 

Some also have travel vouchers from previously canceled trips that they are eager to use.

Travel prices have risen sharply in 2022, driven in part by the soaring cost of jet fuel. 

Domestic airfares are up 40% since the beginning of the year, to $330, according to Hopper, a travel app that tracks and predicts flight and hotel prices. That's about 7% above pre-pandemic prices.

Hopper predicts domestic fares will keep rising another 10%, to an average of $360, by May. 

International fares are likely to rise about 15% between now and June, to about $940, the company predicts.

The rise of premium leisure travel is one of the biggest trends to come out of the pandemic.

Even though business travel remains weak, first-class cabins are filled with passengers willing to pay extra for a more luxurious experience. 

Airlines are catering to this new class of traveler by investing in expanded cabins, more comfortable seats and fancier airport lounges. 

Delta Air Lines, for example, plans to include lie-flat beds and a premium economy section on some of its newest planes, according to Skift's Airline Weekly. 

United Airlines, meanwhile, introduced new vacation routes from New York to the European islands of the Azores in Portugal and Mallorca in Spain. 

The big picture: With global COVID cases declining, many countries have eased their travel restrictions.

Cruise ships have also dropped their mask mandates, after the Centers for Disease Control and Prevention lifted its risk advisory for cruise ship travel.

Be smart: Some countries still require visitors to complete a health form, provide proof of vaccination and present a recent negative COVID test result. The CDC has all the details here. 

Even Americans still need to test negative before returning to the United States, although major airlines have asked President Biden to end the testing requirement along with the current mask mandate for all public transportation.

What to watch: With a glimmer of hope for peace talks between Russia and Ukraine, The Points Guy is seeing a spike in searches for travel to London and Paris. 

"My gut says this will be a big summer for Americans who miss European capitals," says Kelly. 

The summer of "revenge travel"

Americans are splurging on seeing the world after months of restrictions, despite higher prices.

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