Quantcast
Air Canada could begin suspending flights soon as strike deadline nears
JetBlue's new ticket policy entitles every passenger to a carry-on bag
Why United Airlines’ CEO makes as few decisions as possible
American invests in the future of aviation maintenance with new jobs, additional work
DOT probe seeks to determine if frequent flyer programs are fair to travelers
American Airlines flight diverted after passenger starts vaping
Russian Airline Wants $100 Million From Canada for Seizing Its Giant Cargo Plane
Here's where American Airlines is adding flights to Europe in summer 2025
Major airline grounds Airbus A350 fleet, citing faulty engine component
Airline CEO wants airports to cap passengers at 2 alcoholic drinks to limit on-board disruptions
Regulator cuts Malaysia Airlines' air operator certificate duration after probe
United Airlines flight attendants are prepared to strike. Here's why it's still unlikely.
2 workers killed, 1 injured in tire explosion at a Delta Air Lines shop in Atlanta
Emirates Will Buy 5 Airbus A380s From Lessor For $200 Million
Delta Air Lines named official airline of the WNBA
Pair Of C-Suite Officials Depart Wheels Up
LAX Receives Final Cars for People Mover Train
Alaska Airlines and Hawaiian Airlines merger clears Justice Department hurdle, now faces DOT
Alaska Airlines flight attendants reject new contract, union says there's 'more work to do'
Elliott Investment To Push For 10 New Boardroom Directors At Southwest Airlines
Alaska Air Backs JetZero Blended-Wing Design
AI in Aviation Line Maintenance: A Strategic Response to Delays, Satisfaction, and Staffing Challenges
Air taxi service plans for 2026 Los Angeles launch at USC, SoFi and LAX
VistaJet Flight Brings Home Americans in Prisoner Swap
Air Canada Blames Paris Olympics On Decreased Profits
Delta passengers sue airline over refund refusals after CrowdStrike meltdown
Microsoft fires back at Delta after massive outage, says airline declined ‘repeated’ offers for help
Korean Air Confirms A Spacious Lounge Is Coming To The New Terminal One at New York JFK
VAS Aero Services to Acquire an Additional 17 Airbus A320 Airframes, Bringing to 23 the Total Number of A320s Slated for Teardown and Harvested Parts Redistribution
Delta CEO says CrowdStrike-Microsoft outage cost the airline $500 million

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

Lufthansa Group has announced the appointment of Felipe Bonifatti as Vice President Asia Pacific & Joint Ventures East. Based in Singapore, Bonifatti will oversee all commercial activities, including Joint Venture sales, in the Asia Pacific region starting November 1, 2024.

Sep 26, 2024

Union leaders from over 30 countries gathered in Galway this week for the UNI Property Services Global Conference. The conference focused on building union power in the cleaning and security sectors, with delegates voting on strategic initiatives to address low wages, job insecurity, and unsafe working conditions. These initiatives will guide the sector's actions for the next four years.

Sep 26, 2024

Air France is set to enhance its onboard Wi-Fi service, marking a significant move towards providing an upgraded travel experience. Starting in 2025, the airline will gradually introduce ultra-high-speed connectivity for passengers, aiming to offer a "ground-like" internet experience. This new service will be free of charge across all travel cabins and accessible by logging into a Flying Blue account. The rollout will eventually cover all Air France aircraft, replacing the current Wi-Fi offering.

Sep 26, 2024

After a summer marked by the excitement of the Paris 2024 Olympic and Paralympic Games, Air France teams attended the IFTM Top Resa trade fair for three days filled with announcements, conferences, and meetings with tourism professionals.

Sep 24, 2024

A group of Michigan security guards employed by Triple Canopy, Inc. has voted to remove the power of United Government Security Officers of America (UGSOA) union officials to mandate union dues as a condition of employment. The vote, known as a "deauthorization" election, took place by mail in April and May, but the National Labor Relations Board (NLRB) only recently released the full vote count.

Sep 23, 2024

Employees at the San Francisco Airport Marriott Waterfront Hotel have initiated a process to remove UNITE-HERE Local 2 union officials from their workplace. Erika Chavez, a hotel employee, has submitted a petition for this purpose to the National Labor Relations Board (NLRB) Region 20 in San Francisco. Chavez received free legal aid from the National Right to Work Legal Defense Foundation.

Sep 23, 2024