Delta Air Lines is doubling down on more profitable premium travel as it looks to shore up its defenses against an economic downturn.
are also chasing premium revenue. United expects to have 53 premium seats per flight in North America by 2026 - up 75% from 2019. American has plans to increase premium seats by 45% on its long-haul flights by 2026.
Bastian said contribution from premium cabins to Delta's revenue is expected to increase by one to two percentage points each year for the next several years. Delta has said it is on track to generate more than 60% of company revenue from upscale seats and non-ticket sources next year - up from 53% before the pandemic.
The success of this strategy depends on providing reliable on-time operation in terms of arrivals and departures, said Robert Mann, a former airline executive who now runs a consulting firm. "It's kind of a litmus test," he said. Delta aims to build on that performance, Bastian said. "It doesn't matter if you create a premium product that customers are going to be late or they're going to be canceled on," he said.The quest for premium revenue has its underpinnings in the post-pandemic travel patterns.
It's helping carriers fill high-margin seats, which previously used to be booked by corporate travelers. Industry officials and experts see it as a durable trend, helping reduce cyclicality in airline business.
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