Silicon Valley billionaire chooses to fly economy to show support: ‘If I expect my staff to travel this way, I should do the same’

Palmer Luckey: A Billionaire Who Chooses Economy Class

In a business world often associated with luxury travel and extravagant benefits, Palmer Luckey stands out for his unconventional approach. The 33-year-old billionaire, known for founding Oculus VR and the defense tech company Anduril, prefers to fly in economy class—even though he could easily afford more. Luckey, who sold Oculus to Facebook for billions while still in his twenties and now leads a rapidly expanding defense firm, shared on the “My First Million” podcast that he deliberately avoids premium cabins. His reasoning is simple: “If I expect my team to travel coach, I should do the same.”

During the interview, Luckey explained that Anduril enforces a strict travel policy, only reimbursing employees for economy tickets to keep costs down. He believes that spending on business or first class is an unnecessary drain on company resources, especially given how frequently his staff travels. For Luckey, setting this example is about more than saving money—it’s about staying connected with his employees’ experiences.

Luckey takes his commitment further than most leaders. Even when paying for his own flights, he refuses to upgrade. “Even though I have the means, I stick to coach because I don’t want to lose touch with what my employees go through,” he said. He joked that if economy class ever becomes unbearable, he might reconsider for everyone, but for now, he remains steadfast in his approach.

This attitude reflects a broader belief he expressed in the same conversation: leaders shouldn’t claim that money isn’t important while expecting their teams to make financially sound decisions.

Staying Grounded Amid High-Stakes Defense Work

Luckey’s choice is even more notable given his high profile and the security risks tied to his work. Anduril specializes in advanced autonomous defense systems and has secured major contracts, including a nearly $1 billion deal with U.S. Special Operations Command to provide counter-drone technology. Despite facing threats from political opponents and criminal organizations like Mexican cartels, Luckey considers airports and commercial flights to be relatively secure. Since then, Anduril has landed additional contracts, such as a $642.2 million agreement with the U.S. Navy and a $250 million air defense contract with the Pentagon.

Inspired by Family and American Ingenuity

Luckey’s preference for commercial flights is also rooted in family tradition. His grandfather spent over four decades as a pilot for United Airlines, and Luckey still finds inspiration in the aviation industry. He sees mass-market air travel as a uniquely American achievement—one that made global movement affordable and accessible. He’s content with a window seat in the back, often waiting until the plane empties before disembarking.

Frugality as a Core Value

Luckey’s cost-conscious mindset dates back to his early days building Oculus. He recalled times when a $50 part seemed out of reach, forcing him to work minimum-wage jobs and resell broken iPhones on eBay to fund his VR projects. Even after Facebook’s acquisition, he capped salaries at $100,000 for everyone at the startup, including himself. On the podcast, Luckey described his ongoing frugality—including flying coach—as a genuine reflection of his values, not a publicity stunt.

Reactions and Recent Views

The podcast hosts expressed both surprise and admiration for Luckey’s approach, calling it “absolute nonsense” for someone of his wealth, yet acknowledging the discipline it represents. Known for his casual style—often attending government meetings in Hawaiian shirts and sandals—Luckey’s travel habits are just another way he challenges executive stereotypes.

Despite his reputation for thrift, Luckey has made it clear he isn’t opposed to wealth or billionaires. When California proposed a wealth tax, he publicly criticized the idea, arguing that it would force founders like him to sell large portions of their companies to cover the tax bill. He pointed out that he had already paid hundreds of millions in taxes after selling Oculus and used the rest to build a company that now employs thousands. He warned that if he couldn’t pay, the state could seize his assets and garnish his wages indefinitely. His comments came just before Google co-founder Larry Page and Sergey Brin reportedly left California, following a similar move by Jeff Bezos.

Anduril has not commented on whether Luckey’s travel habits have changed in recent years.

This article was first published on Fortune.com.