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Delta Air Lines has acknowledged ongoing challenges in its main cabin performance, particularly in transatlantic markets during the summer season. At the recent Morgan Stanley Laguna Conference, Delta President Glen Hauenstein addressed concerns about weak demand for standard economy seating, noting that returns were negative and labeling this as unacceptable.
The airline reported that over half of its revenues now come from non-main-cabin sources such as premium cabins and ancillary fees. Main cabin margins have remained flat or declined. Hauenstein stated, "I say that because I think it's huge upside. At some point, that has to rationalize. And so that's still to come on our forward-looking view is there will be rationalization of main cabin capacity. You're seeing that real time. I believe it has to continue, and that should, over time, improve Main Cabin results."
Delta plans to address these issues by reducing off-peak main cabin capacity and increasing its focus on premium offerings like Comfort+ seating. The company believes this strategy could help improve yields in the standard economy segment.
