Delta to introduce premium economy service on NYC-LA flights in the air travel upsell competition.
- Delta is planning to launch its premium economy service on some transcontinental flights.
- Some flights have premium economy seats that are twice as expensive as standard economy seats.
- Delta reported that sales of premium seating, such as premium economy and first class, are increasing at a faster rate than those of standard economy.
The airline announced that it will introduce its premium economy service on transcontinental flights in September, as part of its effort to increase sales of higher-priced tickets to customers who are willing to pay for more space and amenities.
Major airlines provide premium economy, a new class of service on long international flights, which is priced higher than standard coach but lower than first or business class.
Delta and its competitors are intensely competing to enhance their planes with premium seating, upgrade lounges, and sell more rewards cards to attract higher-spending travelers, despite a decline in overall airfare prices this year. Delta has announced that its turnaround plan will prioritize profitable routes that feature its Mint business-class cabin. Additionally, even under financial pressure to boost revenue, Delta is considering offering a more expensive seat on its planes, which deviates from its longstanding business model.
In the first quarter, Delta's main cabin ticket revenue increased by 4% to $5.4 billion compared to the previous year, while premium-product revenue saw a 10% rise to $4.4 billion.
Delta announced that it will begin offering an added service on four of its 11 peak-day flights between Los Angeles and New York's John F. Kennedy International Airport on 767s, with plans to expand service later this year.
Transcontinental Delta flights offer the option for economy ticket holders to upgrade to premium economy.
Delta announced that Medallion elite members of its loyalty program will receive complimentary upgrades to Delta Premium Select and have the option to list for upgrades to Delta One on those flights.
Delta's planes on certain routes previously had premium economy seats, but the carrier did not provide the amenities that come with it, such as amenities kits, noise-cancelling headphones, a full meal, and a blanket. These seats were sold as extra legroom tickets, which are a step below premium economy.
Some shorter domestic flights have lie-flat seats, but not the Flagship service provided on international flights.
Business News
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