Delta Air Lines announced on Monday that it will introduce its premium economy service on transcontinental flights starting in September, aiming to attract customers willing to pay more for additional space and perks. This move is part of Delta’s strategy to increase sales of higher-priced tickets by enhancing the travel experience.
Premium economy is a relatively new class of service offered by major airlines on longer, primarily international flights. It is positioned between first or business class and standard economy, often costing twice as much as a standard coach ticket. Delta, along with rivals like United, is competing to outfit planes with more premium seating, upgrade lounges, and sell more rewards cards to attract higher-spending travelers amid a general decline in airfare prices.
Delta’s initiative aligns with similar strategies from other airlines. JetBlue Airways, for instance, has emphasized profitable routes that feature its Mint business-class cabin as part of its turnaround plan. Even Southwest Airlines, traditionally known for its single-class service, is considering introducing a more expensive seat option to boost revenue.
In the first quarter, Delta reported a 4% increase in ticket revenue from its main cabin, reaching $5.4 billion, while premium-product revenue rose 10% to $4.4 billion. This data underscores the growing importance of premium services in driving airline revenue.
Starting September 10, Delta will offer its premium economy service on four of 11 peak-day flights between Los Angeles and New York’s John F. Kennedy International Airport using Boeing 767s, with plans to expand this service later in the year. Customers purchasing standard economy tickets will have the option to upgrade to premium economy on these transcontinental flights.
Medallion elite members of Delta’s loyalty program will be eligible for complimentary upgrades to Delta Premium Select and can also list for upgrades to the top-tier Delta One product on these flights. Although some of Delta’s planes already feature premium economy seats, the airline had not been offering the associated services, such as amenities kits, noise-canceling headphones, full meals, and blankets. These seats were previously sold as extra legroom tickets, which are a step below premium economy.
Delta’s introduction of premium economy on transcontinental flights reflects a broader industry trend where airlines are enhancing their services to cater to higher-paying customers. This approach aims to capitalize on the demand for more comfortable and premium travel experiences, ensuring that airlines remain competitive and profitable in a challenging market environment.
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