Quantcast

Delta Air Lines outlines plan for new premium seating strategy

United Airlines CEO Reassures Passengers About Newark Airport Safety
American Testing Tech to Help Passengers Make Connecting Flights
British Airways to use AI in efforts to improve operations
American Airlines Tests New Tech to Help Passengers With Tight Connections During Summer Rush
Flight Diverted After Pregnant Woman on Board Goes into Labor and Delivers Her Baby: Report
United Airlines CEO Scott Kirby says "this is the most optimistic I've been in my entire career about finally getting the FAA fixed"
U.S. Transportation Secretary Sean P. Duffy Unveils Plan to Build Brand New, State-of-the-Art Air Traffic Control System
Passenger rushing for next flight can't believe what woman next to her does
Why fuel price crash won’t make flying cheaper
Kristi Noem says travelers without Real ID will still be able to fly after deadline
Frontier Airlines Announces New Routes Launching This Summer, Connecting Baltimore With Chicago O’Hare and Trenton, N.J. With Myrtle Beach, S.C.
Airlines in North America prioritize investments in cyber, AI
The evolution of the airline uniform — a cross check
Global Airlines & HiFly Operate 1st Passenger Airbus A380 Flight Between Barcelona And Berlin
American Airlines unveils ritzy new plane suites launching this summer
Airline Stocks To Keep An Eye On - April 28th
Gatwick Airport Faces Potential Strikes
50 New Routes Starting In May 2025
Report: JetBlue, United Mulling Partnership
New First-Class Suites, Futuristic Aircraft and the Top Air Travel News From April 2025
Southwest Airlines Announces Reimagined Fare Products, New Benefits for Rapid Rewards Credit Cardmembers and Tier Member Customers
New Alaska Airlines trading cards take flight this World Pilots’ Day - Alaska Airlines News
United CEO calls Trump's tariffs a 'chess game'
Virtual Training Becomes a Reality
Korean Air Restarts Longest 747 Passenger Flight in the World
Flight tickets from Srinagar remain exorbitantly high despite aviation ministry request
RTX Q1 Earnings & Sales Beat Estimates, Increase Year Over Year
Delta faces federal investigation as it scraps hundreds of flights for fifth straight day
Coalition pledges to remove EV tax break two days after Dutton ruled out scrapping it – as it happened
Adani’s airport unit seeks $750 million loan from global banks
Delta Air Lines outlines plan for new premium seating strategy
Research
Webp uefmsw7k0lt5f20uxuve40u9xjr0
Airbus A380 | Airbus

Delta Air Lines President Glen Hauenstein announced plans to add premium seats to planes during his speech at the Morgan Stanley 12th Annual Laguna Conference. He noted a significant shift in profitability, stating, "The biggest money-losing cabin used to be the premium cabins. And after years of reengineering and years of changing policies and moving distribution, improving distribution, now those are the most profitable cabins on the airplane."

The airline plans to unveil further details at their November Investor Day, including an initiative to unbundle premium cabin fares under a concept referred to as “basic business” or Delta (Less Than) One. This move aims to introduce more seats and cater to different customer segments.

Hauenstein's comments reflect broader industry trends where airlines like British Airways, Emirates, Qatar Airways, and Finnair have already implemented similar models. These carriers have introduced charges for services traditionally included in business class fares such as advance seat assignments, lounge access, and checked baggage.

Get the Newsletter
Sign-up to receive weekly round up of news from Sky Industry News
By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

For instance, Finnair's model requires passengers with business class tickets from Europe to Asia to check in with economy passengers and pay for checked bags while being denied lounge access. Delta believes adopting such measures will allow them to charge current premium customers more through a la carte pricing while filling excess seats with basic business passengers.

Currently, Delta offers business class upgrades to coach passengers for as little as $299 if they anticipate empty seats. However, they aim not to cannibalize revenue by ensuring these remain distinct products from higher-priced fare options.

While the idea of Basic Business is intriguing for segregating high-fare passengers from low-fare ones without losing revenue opportunities, no successful implementation has yet been achieved.

Additionally, much of the benefit derived from unbundling domestic economy is driven by tax advantages that do not apply internationally. Thus far-reaching implications may be limited domestically due to fewer premium passengers compared internationally.

Delta has been striving over the past decade to monetize first-class offerings better. Historically upgrading 90% of first-class seats with frequent flyers by 2018 was deemed impractical by CEO Ed Bastian who called it "stupid." While eliminating first-class domestic upgrades entirely didn't materialize fully; treating extra legroom coach seating as an 'upgrade' became a strategy along with shifting top elite confirmed upgrades into premium economy versus business class.

Aircraft reconfiguration could include adding both first-class and Comfort+ seats alongside premium economy on international flights. Delta envisions itself as a premier airline catering primarily towards high-paying customers—whether this niche market continues growing remains uncertain but will undoubtedly attract attention come Investor Day.

Organizations Included in this History
More News

The International Air Transport Association (IATA) anticipates that Sustainable Aviation Fuel (SAF) production will reach 2 million tonnes, equivalent to 0.7% of total airline fuel consumption by 2025.

Jun 1, 2025

Emirates Airline has entered into a partnership with Al Ain Football Club, which will see the airline become the Official Airline Partner for the club during the 2025/26 season.

Jun 1, 2025

IATA has called on governments to eliminate barriers preventing airlines from repatriating revenues from ticket sales and other activities.

Jun 1, 2025

IndiGo, Delta Air Lines, Air France-KLM, and Virgin Atlantic have announced a strategic partnership aimed at connecting India with Europe and North America.

Jun 1, 2025

As the aviation industry recovers in 2025, airlines face critical decisions when expanding their fleets.

Jun 1, 2025

In the United States, five airlines are currently operating Boeing 737 MAX aircraft: Alaska Airlines, Allegiant Air, American Airlines, Southwest Airlines, and United Airlines.

Jun 1, 2025