Delta Air Lines is exploring the introduction of new ticket options aimed at the premium cabins located at the front of its aircraft.
For years, airlines have been refining their economy seating, introducing various tiers such as extra legroom and basic economy fares that restrict changes and skip seat assignments. Delta was at the forefront of this trend in the U.S. when it first introduced basic economy tickets more than ten years ago, prompting competitors like United Airlines and American Airlines to follow suit.
Now, however, airline leadership is shifting their attention towards premium seating options, as demand for these services has remained more resilient this year compared to the economy class.
“Premium has certainly been where our margins have continued to expand, and so we’re highly focused on continuing to provide improved service to those customers and more segmentation,” said Delta President Glen Hauenstein during a recent earnings call with investors. “The segmentation that we’ve done in the main cabin is kind of the template we’re going to apply to all our premium cabins over time because different people have different needs.”
In the first half of this year, Delta experienced a 6% increase in revenue from premium seats such as business class, totaling $10.6 billion, while revenue from main cabin economy tickets fell by 4% to $11.7 billion. As the most profitable airline in the U.S., Delta has been emphasizing growth in its premium offerings and its successful loyalty programs.
U.S. airlines have largely abandoned international first-class seating in favor of larger business class cabins, which now feature lie-flat seats and enhanced amenities compared to prior generations.
Although Hauenstein did not provide specifics on potential modifications to premium seating, it remains uncertain whether Delta would entertain a more affordable business or first-class fare that lacks certain benefits like lounge access or advance seat assignments, or if they might introduce a larger seat option with additional features.
Despite this, Hauenstein mentioned that Delta is currently assessing different possibilities with customers through surveys.
“We haven’t rolled it out yet, not because we lack the technological capability, but because we want to ensure that customers understand our offerings and find them valuable,” he stated.
Travel consultant Henry Harteveldt expressed skepticism regarding the likelihood of Delta offering a more stripped-down premium option. He noted, “Airplanes are expensive … and it’s much easier to give your passengers a reason to pay more for your product than to pay less.”
Other airlines are proactively enhancing their premium cabins, introducing extra roomy seating options and configurations that accommodate additional passengers. For instance, United Airlines is updating its long-haul Polaris cabin, while American Airlines has new seating plans for some of its Boeing 787 Dreamliners.
Meanwhile, Delta’s partner, Virgin Atlantic, has introduced the “Retreat Suite” in its Airbus A330’s Upper Class cabin, designed to accommodate up to four people for an intimate dining experience in a private setting.
When asked about upgrades to Delta’s premium seating, CEO Ed Bastian informed Finance Newso that “the premium products have had life cycles … and what we considered state-of-the-art six or seven years ago is no longer the standard.”
“We are actively continuing to upgrade and enhance our offerings. This is just part of doing business,” he said. “But rest assured, our products will be of high quality.”
