Quantcast

Delta Air Lines outlines plan for new premium seating strategy

Spirit Airlines Explores Bankruptcy Filing
Here's how Southwest Airlines' new seating and boarding process will work
Delta Adds New Route to Asia
Southwest Airlines will begin selling assigned seats in 2025
United Airlines Pilot Buys Passengers Pizza In Albuquerque After Flight Was Delayed 7 Hours
Czech Airlines to Cease Operations, Ending 23-Year SkyTeam Partnership
An Asian airline hopes launching one of the world's longest narrowbody routes will actually be a comfort upgrade for passengers
Airlines begin canceling flights, offering rebooking ahead of Hurricane Helene
Southwest Airlines to cut service and staffing in Atlanta to slash costs
New heights, new features: Discover Alaska’s enhanced Flight Pass subscription service
Alaska Airlines completes acquisition of Hawaiian Airlines, expanding benefits and choice for travelers
American Airlines welcomes JetSMART to the award-winning AAdvantage program
Explore Japan for free? Japan Airlines offers free domestic flights to foreign travelers
Delta named Official Airline Partner of Birmingham City Football Club
American Airlines to Cut These Routes to Las Vegas, Orlando, and More — Here's Why
Alaska Airlines completes acquisition of Hawaiian Airlines, expanding benefits and choice for travelers
Southwest wouldn't really start charging for bags — right?
JD Power ranked this Midwest airport as the best among largest airports in North America
Alaska Airlines Chief Plans More Routes After a Deal With Hawaiian
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
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

Etihad Airways has announced the launch of a new route connecting Abu Dhabi and Addis Ababa.

Oct 27, 2025

United Airlines has unveiled its Summer 2026 schedule, which includes new flights from Newark to Bari, Split, Santiago de Compostela, and Glasgow, as well as from Newark to Seoul and Washington, D.C., to Reykjavik.

Oct 27, 2025

Ethiopian Airlines has announced a limited-time 20% discount on fares between Addis Ababa and Porto.

Oct 27, 2025

Avianca has announced that passengers are encouraged to register for the Biomig biometric migration system to avoid lines and delays at participating airports in Colombia.

Oct 27, 2025

Delta Air Lines has announced an upgrade to its mobile application, enhancing travel convenience ahead of the holiday season.

Oct 27, 2025

Los Angeles International Airport (LAX) has announced the closure of Terminal 5 to commence significant renovations aimed at enhancing the passenger experience.

Oct 27, 2025