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.