LATAM Premium Economy vs Business Class: Which to Book

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An Honest Look After 20+ Flights Between LAX and Lima

Once you’ve chosen the nonstop LATAM flight between Los Angeles and Lima — and trust me, that’s the right move — the next question is:

Is it worth splurging on business class, or is premium economy enough?

I’ve flown both, multiple times, and here’s where I’ve landed: Premium economy on the 767 hits the sweet spot.

What You Get with LATAM’s Premium Economy on the 767

If you’re flying LATAM’s 767 from LAX to Lima, premium economy offers a noticeable upgrade from economy — without the eye-watering price tag of business class.

There are 39 premium economy seats on this aircraft, all located in the first rows of the main cabin. The configuration is 2-3-2, so if you’re like me and always pick a window seat in the first row, you’re in a great spot:

• No one in front of you
• Window to lean against
• Early boarding
• First off the plane
• Footrest for better circulation

NOTE: If you’re tall like my husband, he actually hates this seat because the bulkhead is sold down to the floor, forcing him to have his legs uncomfortably bent the whole way. He prefers a premium economy seat further back, where there is a seat in front of him. This way, he can stretch his legs out a bit. 

Key comfort differences:

• Seat pitch: ~35″ (vs ~31–32″ in standard economy)
• Seat width: ~17.8″
• Footrest: Helps you shift and sleep more comfortably
• Adjustable headrest and a quieter cabin feel up front
• Elevated, although carb-heavy, meal which I actually prefer to the overly fancy offerings in Business Class.

In premium economy, you also get:

• One checked bag included
• Priority boarding
• Priority baggage (not always perfect, but bags do tend to come off faster)
• Dedicated check-in desk in Lima, which is far less chaotic than the main line

It’s not a lie-flat seat, and no, it won’t rival the plush business class experience — but it’s plenty comfortable for the 8-hour overnight flight, especially if you’re thoughtful about your seat choice.

What You Get with LATAM’s Business Class on the 767

If you do decide to go full business, here’s what LATAM offers on the 767‑300ER:

• 1–2–1 configuration, so everyone gets direct aisle access
• Lie-flat bed — around 78″ long when fully reclined
• Larger entertainment screen (~16″)
• Amenity kit with basics like a toothbrush, lip balm, and socks
• Noise-canceling headphones, USB and power outlets
• Smaller, quieter cabin for a more peaceful flight

It sounds great — and for this route, it is a solid product. But there are caveats.

Because the 767 is a narrower aircraft, even the lie-flat seats feel confined. For taller travelers — like my 6’2″ husband — or claustrophobic, slightly high-maintenance ones like myself, the space can feel restrictive… and a little coffin-like.  Sorry, I really tried not to say it — but there it is.

Now, would I take the upgrade over premium economy if it were just a few hundred dollars more? Yes.

But I wouldn’t fight for it.

And when the price hits $3,500–$6,000 roundtrip, it just becomes tough to justify — unless you’re flying for work or someone else is footing the bill.

As someone who’s flown this exact business class multiple times, I really wanted it to feel amazing.

But honestly? I didn’t sleep so much better than in premium economy. And so for me, it doesn’t warrant a $4,000 price difference.

What About the 787? A Mixed Bag

LATAM’s 787-8 and 787-9 aircraft are slowly being upgraded with fancy new business class cabins, complete with:

• Recaro seats
• Some with sliding privacy doors
• Modern finishes and more space

If you’re lucky enough to fly on one of those planes, and the fare is within reach, the splurge might make more sense.

But here’s the catch:

Premium economy on the 787 is not the same experience as on the 767. It’s a 3-3-3 layout, and in my experience, it feels too much like standard economy.The legroom is tighter. The layout is less restful.

So unless you’re in business, the 787 can actually feel like a major downgrade to me.

Baggage Allowance: Another Key Difference

When comparing fares, don’t forget about the luggage:

Cabin Class	Checked Bags Included
Economy	Usually 0
Premium Economy	1
Business Class	2

That checked bag in premium economy is a real perk when you’re bringing gifts, clothes, or even a pile of Peruvian Frazadas to spruce up your decor.

What About LATAM’s Upgrade Bidding System?

That is just not worth $1000 on the low end and up to $3000 at other times for just 8 hours!

If you’ve booked premium economy or economy and are hoping to snag a last-minute upgrade, LATAM does offer a bidding system for business class. But let me be honest — I find it pretty lame.

The suggested opening bid is often around $600, and it can climb to $1,200 or more for the same seat that might have cost just a little more when booking originally. Somehow, seeing those numbers laid out — and knowing it’s still the same narrow seat on a 767 — really drives home how wildly overpriced the upgrade can be.

I’ve looked. I’ve considered it. But every time I think about what else $1,200 could buy in Lima, I close the app.

Tried Using Miles to Upgrade? Same.

In theory, LATAM allows mileage-based upgrades — but in practice? It’s a maze.

As a Gold Pass member, I’ve tried multiple times to use segments or miles to upgrade, and I still haven’t cracked the system. Between unclear rules, limited availability, and a confusing interface, it feels like LATAM is actively trying to make it difficult.

I’m hoping that as I level up my status — I’m currently Gold and working on it — the process will get smoother. But for now? I’ve had better luck just booking the seat I actually want and avoiding the upgrade drama entirely.

Why Premium Economy Is My Default

It’s simple: I arrive in Lima feeling (somewhat) rested — and triumphant that I haven’t spent a fortune doing it.

Unless LATAM offers a deeply discounted business fare or I can guarantee one of the new 787 refits, I’ll take my first-row window seat on the 767 every time.

The value is there. The comfort is enough.

And I’d rather spend the savings on great meals, massages, or another adventure once I land in Peru.

Quick Domestic Upgrade Tip (Bonus!)

If you’re continuing on — like us, heading to visit family in Tumbes, or maybe flying to Iquitos on your way to the Amazon, or Cusco en route to Machu Picchu — you can often pay just $14 to $30 to upgrade to the front section on LATAM’s domestic flights (usually A320s or A321s).

You’ll get:

• More legroom
• A quieter ride
• Premium Check-in area
• First off the plane

It’s not essential, but after an overnight from L.A., it can be a small upgrade that makes a big difference.

Final Takeaway

Check out this video of me walking to my seat through Business Class to get a sense for yourself!

Premium economy on the LATAM 767 hits the sweet spot: More comfort, smarter pricing, fewer compromises.

If you’re flying nonstop between LAX and Lima, and you want a better-than-economy experience without dropping thousands, this is your move.

It’s not just cheaper — it’s smarter.