Quantcast

Delta Air Lines outlines plan for new premium seating strategy

LA Considers $25 And $30 Minimum Wages For Hotel And Airport Workers
Airlines are on the hook for more than you think if something goes wrong with your trip
WA Labor & Industries plans to create new airline worker protections
Airlines must now give automatic refunds for significant delays. Here's what to know.
Spirit Airlines Pursues Bankruptcy as a Path to Tie-Up With Frontier
American Airlines fined $50M for violating disability laws
Canada's flight attendant union applauds NDP bill to end unpaid work in the airline sector
American Airlines testing new technology that would crack down on boarding
Exciting New Airline Routes Coming to North
Another city ignores airport commission's advice, zones for housing near JWA
United shares hit pre-pandemic high after airline forecasts strong finish to 2024, plans buyback
Alaska Airlines Just Made Its Loyalty Program Even More Lucrative With New Rewards, Better Upgrades, and More
Food safety problem closes Detroit airline kitchen leaving 200 flights without meals
5 Reasons Why Kazakhstan's Air Astana Is Establishing Itself As A Key Player In Asian Aviation
JetBlue is no longer serving hot food in economy class on transatlantic flights
Video shows traveler hurl computer monitor at Frontier employees in Chicago
White House 'in touch' with airlines as hurricanes Helene, Milton spark price-gouging fears
Airline bans two items from luggage amid conflict in the Middle East
Turkish Airlines pilot dies midflight, leading to emergency landing in New York
Spirit Airlines Explores Bankruptcy Filing
Airlines turn to AI to allocate gates and cut waiting times
American Airlines Passengers Save Woman from Alleged Violent Male Companion on Flight
Garuda Indonesia and Japan Airlines (JAL) Form Joint Business Agreement — What To Know
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
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

Ethiopian Airlines has announced the launch of a new daily passenger service to Abu Dhabi, United Arab Emirates.

Jul 16, 2025

Etihad Airways has announced the launch of services to seven new destinations—Almaty, Baku, Bucharest, Medina, Tashkent, Tbilisi, and Yerevan—beginning in November 2025.

Jul 16, 2025

Airlines for America has emphasized the need for increased funding from the Federal Aviation Administration (FAA) to hire more air traffic controllers, update infrastructure, and build on the One Big Beautiful Bill down payment.

Jul 16, 2025

Los Angeles International Airport (LAX) has announced a complete closure of Aviation Boulevard between Arbor Vitae Street and Century Boulevard from July 14 at 9 a.m. to July 21 at 6 a.m. Shuttle access to the LAX/Metro Transit Center will remain...

Jul 16, 2025

Avianca has announced the launch of a social media thread on X, inviting travelers to explore Dallas as a new destination.

Jul 16, 2025

Finnair announced that Palta and the Finnish Transport Workers’ Union (IAU) have reached a negotiation result, leading to the cancellation of all previously announced strikes and the resumption of normal flight operations.

Jul 16, 2025