Delta Air Lines has reported a significant change in its first-class cabin dynamics over the past 15 years. According to Delta executives, only 12% of passengers paid for their first-class tickets in 2009. Today, about 75% of those seats are purchased outright, reducing the availability of free upgrades for elite status members.
"The biggest loss leaders on the airplane in 2010, and before, were the premium products," said Glen Hauenstein, Delta's president, during an investor day presentation on November 20. "We didn't sell them," he added, referring to previous practices of offering free upgrades to elite members.
Hauenstein attributed this shift to a strategic reduction in the price gap between coach and first-class seats. In 2010, a first-class seat was approximately 13 times more expensive than a coach seat. Currently, this difference is much smaller; for example, on flights from Raleigh-Durham International Airport (RDU) to Los Angeles International Airport (LAX), first-class fares are about two and a half times the cost of main cabin tickets.