Quantcast

Delta Air Lines outlines plan for new premium seating strategy

US court blocks Biden administration's airline fee disclosure rule
JetBlue Issues Dim Outlook But Execs Remain Confident in Turnaround Plan
Delta to Resume Tel Aviv Flights April 1
These Frequent Fliers Are Done With Loyalty Programs
JetBlue accepting Venmo as payment method for flights purchased through mobile app
United Airlines stock rallies on results, as growing demand wasn’t just about premium seats
Delta Adds Another Alaska Route
Southwest to Reduce Pilot Head Count at Several Bases
Dublin Airport savings boost for holidaymakers – but passengers need to be quick
American Halts CRJ-200 Operations
Shanghai Airlines to Launch Casablanca Route
Delta employees to receive an average five weeks of pay in annual profit sharing
Akasa Air faces DGCA heat for lapses; warning letter issued to airline's accountable manager
Indigo Eyes European Market Amid Intensifying Competition with Air India
Air India to operate daily Delhi-Prayagraj flights for Maha Kumbh
Engine maker agrees to compensate WizzAir for grounded planes
Turkish Airlines’ flights are riddled with bedbugs, passengers say
British Airways frequent flyers react to Executive Club changes
Inside the short-lived, men-only flights where kids and women were banned but cigar and pipe smoking were rife
China steps up drive to break Boeing, Airbus grip on plane market
Heathrow’s New York service clings to spot in top aviation routes
Airline praises pilots in crash-landing where both died but nearly half the passengers survived
Mexico state airline to buy five Embraer planes next year
A record number of people are expected to fly over the holidays. That's good for travel stocks, but not for passengers.
American Airlines technical issue sparks travel chaos on Christmas Eve as flights heavily delayed after being grounded
Why United Airlines has had such a stellar year despite being Boeing's biggest customer
JetBlue nixing routes between multiple major cities, reducing several others
Airline Stocks Led The Travel Industry's Record 2024 Rally. Here's What's Next.
It’s beginning to look like another record for holiday travel
Qatar Airways cleans up at the World Travel Awards
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

Flying Food Group has announced reaching 20,000 followers.

Aug 5, 2025

Flying Food Group's Miami facility recently held an event to honor its Employee of the Month and celebrate work anniversaries.

Aug 5, 2025

Yesterday, a Turkish Airlines Boeing 777-300ER was evacuated at Antalya Airport after smoke was seen coming from its landing gear while taxiing.

Aug 5, 2025

Alaska Airlines has announced the addition of seven new routes across 12 cities in California, Oregon, Washington, and Idaho.

Aug 5, 2025

Ramp is offering a platform aimed at streamlining expense management for U.S.-based businesses with strong cash flow.

Aug 5, 2025

The Boeing E-7 Wedgetail has been identified as the primary replacement for the aging Boeing E-3 Sentry airborne early warning and control (AEW&C) aircraft, though its future with the United States Air Force (USAF) remains uncertain.

Aug 5, 2025