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Business class+? Delta says segmentation is coming to high-end cabins

July 10, 2025
07:51 PM
4 min read
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Delta is studying changes to its premium-cabin offerings, similar to what airlines have done in coach.

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4 min read

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investment

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Published

July 10, 2025

07:51 PM

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CNBC

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businesseconomystocksairlinestravelmarket cyclesseasonal analysismarket

Delta Air Lines is studying how to segment its premium cabins

The airline could offer different options that are similar to changes it's made in the coach cabin

Other airlines offer more spacious seats within class and first class

In this articleDAL your favorite stocksCREATE FREE ACCOUNTNurphoto | Nurphoto | Getty ImagesDelta Air Lines is studying new types of airplane tickets — this time in the premium cabins at the front of the plane

Airlines spent years slicing up their coach cabins, from extra legroom seats to bare-bones basic economy fares that don't allow changes or include a seat assignment

Delta was a pioneer in the U

When it launched basic economy fares over a decade ago with rivals United Airlines, American Airlines and others ing suit

But now airline executives are turning their focus to their premium cabins, where demand is holding up better this year than in the back of the plane

Read more CNBC airline newsAirport lounges, Europe and premium class are on the table, Southwest CEO saysTrump wants to bring manufacturing jobs back

The aviation industry can’t hire fast enoughWhy it’s getting even harder to get into airport loungesRecession in Row 33: Plane tickets are getting cheaper as domestic travel demand weakens"Premium has certainly been where our margins have continued to expand, and so we're highly focused on continuing to vide imved service to those customers and more segmentation," Delta President Glen Hauenstein said on an earnings call with analysts on Thursday. "The segmentation that we've done in main cabin is kind of the template that we're going to bring to all of our premium cabins over time because different people have different needs. "Delta's revenue from premium seats class rose 6% in the first half of the year to $10. 6 billion, while main cabin economy ticket revenue dropped 4% to $11

The carrier, the most fitable U

Airline, has said for years that its of sales from high-end seats and its lucrative loyalty gram has been growing

American Airlines new -class suite

Carriers have largely ditched international first class in favor of larger class cabins, where lie-flat seats have more amenities than seats of past decades

Hauenstein declined to detail possible changes to the premium seats

It's not whether Delta would consider a cheaper first- or -class ticket that might not include perks lounge access or seat assignments, or a potentially bigger seat that could come with add-ons that standard tickets don't have

But Hauenstein said Delta is testing some possibilities on customers and surveying travelers. "We haven't rolled it out yet, not because we don't have the nological capability, but we want to make sure that customers understand what we're putting in market and that they find value in it," he said

Henry Harteveldt, travel consultant and president of Atmosphere Re Group, said he's not convinced that Delta would consider a stripped-down premium fare. "Airplanes are expensive … and it's a lot easier when you give your passengers a reason to pay you more for your duct than to pay you less," he said

United Airlines new Polaris cabin configurationUnited AirlinesOther airlines are working to outfit their top-tier cabins to offer a few seats that have extra room and even space for a visitor, United's planned to its long-haul Polaris cabin and American's new seats on some of its Boeing 787 Dreamliners

Delta's partner, Virgin Atlantic, offers the "Retreat Suite" at the front of its Airbus A330's Upper Class cabin that can be converted "so up to four people can enjoy an intimate dinner together in their own private social space. "When asked whether Delta will some of its highest-end seats, CEO Ed Bastian told CNBC Wednesday that "the premium ducts have had life cycles … and what we thought was state of the art six or seven years ago no longer is. "We're continuing to upgrade and it

So that's part of the cost of," he said. "But our duct will be very, very nice.