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.