Delta Air Lines plans new fare categories and potential high-end credit card

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Delta Air Lines plans new fare categories and potential high-end credit card

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Brian Kelly Founder and The Points Guy | The Points Guy

By Sky Industry News

Nov 21, 2024

Delta Air Lines is set to introduce a new tier to its coach product lineup in 2025. This move is part of the airline's broader strategy to unbundle its offerings, providing passengers with more fare options under a "good, better, or best" model.

"We've got all these different cabins on the airplane. But we really think there's another way to segment them," stated Delta president Glen Hauenstein during an investor day event in New York. The plan involves trialing these new fare "subcategories" starting from the coach class.

Currently, Delta offers two main coach products: full-fare economy and basic economy. Basic economy, introduced in the 2010s, competes with ultra-low-cost carriers by offering lower fares but fewer perks such as SkyClub access and complimentary seat selection.

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The new subcategory aims to offer a pricier option within the main cabin that provides better benefits than standard tickets. However, specific details about what this will include remain unclear as Delta has not made any formal announcements yet.

"We're going to test and learn along the way," Hauenstein remarked regarding the upcoming changes. The airline plans to extend this "good, better, best" approach beyond just coach seating by 2025.

Delta also hinted at possible changes in its credit card offerings with American Express. Currently, the highest-tier consumer card available is the Delta SkyMiles® Reserve American Express Card with a $650 annual fee. The company is exploring whether there could be an even higher-end card.

"But is there even a better card?" Hauenstein questioned during his presentation. The partnership between Delta and Amex has proven lucrative, generating over $7 billion this year alone for Delta.

These developments come amid ongoing discussions about how airlines can adapt their services to meet evolving consumer demands while maximizing profitability. As these trials unfold over the next few years, it remains to be seen how they will impact customers' experiences and choices.