Delta Air Lines' Premium Economy Service Expansion
Launch Date:
Premium economy service starts Sept. 10 on select transcontinental flights.
Routes:
Initially available on four of 11 peak-day flights between Los Angeles and New York’s JFK Airport on Boeing 767s.
Expansion Plans:
Delta plans to expand premium economy service to more routes later this year.
Features of Delta's Premium Economy
Positioning:
Sits between first/business class and standard economy.
Amenities:
Includes amenities kits, noise-canceling headphones, a full meal, and a blanket.
Upgrade Options:
Available for standard economy ticket holders to purchase an upgrade.
Loyalty Program:
Medallion elite members eligible for complimentary upgrades to Delta Premium Select and can list for upgrades to Delta One.
Revenue Growth:
Delta's main cabin ticket revenue rose 4% to $5.4 billion in Q1, while premium-product revenue increased 10% to $4.4 billion.
Financial Performance
United Airlines:
Competing by increasing premium seating and upgrading lounges.
Competitive Landscape
JetBlue Airways:
Focus on profitable routes with Mint business-class cabins.
Southwest Airlines:
Considering introducing a more expensive seat, deviating from its traditional model.
Past Practices:
Some Delta planes had premium economy seats but were sold as extra legroom tickets without the full service.
Historical Context
Industry Trends:
Delta and American Airlines are adopting similar models, with some flights featuring premium seats but limited services.
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