Delta has trained its passengers to pay premium prices. Here's how it plans to get even more from them | Fortune
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Delta has trained its passengers to pay premium prices. Here's how it plans to get even more from them | Fortune
Delta Air Lines earns 20% more revenue per seat than U.S. competitors, and its premium cabin is poised to surpass its main cabin for the first time in 101 years. Premium revenue rose 14% year-over-year in the most recent quarter, nearly matching main cabin revenue, which grew only 1%. Joe Esposito, appointed chief commercial officer in January, is testing domestic flights with 44 first-class seats, pursuing consumer-brand partnerships, upgrading in-flight meals, and expanding travel services including servicing engines for rival airlines. CEO Ed Bastian describes the strategy as “de-commodization.”
"His initiatives include everything from testing out a plane with 44 first class seats on domestic flights, almost double the average, to landing more partnerships with other consumer brands. He is also looking to beef up Delta's travel services business, making the meals it offers in-flight more gourmet and even servicing engines for rival airlines."
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