Cathay Pacific Airways Ltd. Chief Executive John Slosar said Monday that the Hong Kong-based carrier plans to launch premium economy cabins on long-haul flights from the second quarter of next year, tapping a new source of revenue from travellers who would like more space but don't want to fork out substantial business-class fares.

The blue-chip airline will join a handful of other major regional carriers to offer the premium economy cabin -- an intermediate step between coach and business class -- at a time when many companies have cut executives' travel budgets amid global economic uncertainties.

To stay competitive, many airlines have in recent years invested heavily in their long-haul business-class cabins, with amenities such as flat-lying beds becoming standard in the trade.

Meanwhile, coach-class products have remained largely unchanged in terms of personal space, resulting in a significant price gap. A round-trip flight between Hong Kong and New York on Cathay Pacific's business class in September costs as much as six times the fare of a coach ticket, according to the airline's website.

"The seat will be more like a regional business-class seat," Mr. Slosar said in a statement. "But it's not just the seat, we'll have an improved service as well," he said, noting that meals on the service will also be improved. Pricing and other specifics on the new cabins haven't yet been released.

In the aftermath of the 2008 global financial crisis, Cathay Pacific conducted a strategic review of its product offerings to consider whether it needed to adjust its heavy focus on the premium travel market, and whether it should introduce a premium economy cabin for long-haul services.

Mr. Slosar said in June the airline plans to offer new economy-class seats on its aircraft as early as the third quarter.

Cathay Pacific's long-haul economy-class cabins last underwent a retrofit in 2006 with the installation of seats that move forward when passengers recline to give them more space. However, some travelers said the hard-back seats were uncomfortable.

Other airlines that offer premium economy cabins on their long-haul flights include All Nippon Airways Co., Qantas Airways Ltd., Japan Airlines Corp., British Airways PLC and Virgin Atlantic Airways. United Continental Holdings, Inc.'s United Airlines markets several rows of coach on most of its aircraft as an 'Economy Plus' product, which offers a few extra inches of legroom for customers paying a surcharge or who have an elite status on its frequent flyer program.