Delta inches closer to 'basic business,' hints at more premium seats in future
Big changes could be on the way for the front of Delta Air Lines’ planes.
This week, executives at the Atlanta-based airline fueled more speculation about a possible basic business-class fare, and suggested more premium seats could be on the way to its jets in the future.
Historically, passengers booking one of Delta’s higher-end seats like domestic first class or its Delta One suites could take for granted that they’d get services like checked bags and seat selection for free.
Those sorts of restrictions and add-on charges have typically been more of a reality for its lower end of the fare ladder, including its basic economy offerings that have been around since the 2010s.
Read more: Delta's stunning new Seattle business-class lounge is its most unique one yet
A dizzying number of fare options
Earlier this year, Delta announced it would soon begin offering a much longer list of fare choices, beginning in October: Delta One Classic, or Delta One Extra? Comfort Classic, or Comfort Extra? You get the idea.
But only Delta's coach cabin has a low-level “basic” option, which comes without seat selection, SkyMiles earnings or Sky Club access, among other restrictions.
Leaders have hinted at 'segmentation' in the front cabins
For months, though, Delta executives have hinted that they’d like to expand the menu of fare options (leaders call it “segmentation”) to the carrier’s pricier cabins. And they dropped more hints this week.
Delta President Glen Hauenstein called the airline's main cabin — which, again, has a "basic" option — a "template" for the rest of its plane.
“I think the segmentation that we’ve done in the 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,” Hauenstein said, speaking Thursday on the company’s second-quarter earnings call.
“It’s all about giving people more choice, more pricing options, and more products and services in every cabin,” he added.
Related: Your next Delta Air Lines fare might be priced by AI: Here's what that means
Basic business, something nicer, or both?
Industry pundits have suggested one of those “choices” Hauenstein alluded to could include a slimmed-down option for passengers in its first-class, business-class, premium economy and Comfort cabins.
Any guesses what that might include? Perhaps no checked bags or advance seat selection — as some European airlines have already done in their front cabins.
During Thursday’s conference call, veteran CNBC aviation journalist Leslie Josephs asked Hauenstein directly whether travelers should expect a basic-business fare ... or, perhaps, an extra-special seat at the front of its jets.
He offered no hints.
“I think we’re going to going to reserve comment on that until we roll it out,” Hauenstein said, noting Delta is currently surveying customers on their preferences.
“Could you tell us what you’re testing, exactly?” Josephs asked.
“No,” Hauenstein replied.
A growing number of airlines, globally, have outfitted the front of their long-haul planes with elevated business-class seats in recent years.
Look no further than the extra-swanky Polaris suites top competitor United Airlines unveiled in May.
For now, we'll have to wait to see exactly how Delta's plans shake out.
Read more: Delta predicts Sky Club overcrowding will be 'solved' within next 2 years (mostly)
More premium seats are coming
What Delta was clear on, though, is that it wants more high-end seats on its planes.
As an airline that has long catered to high-dollar customers, the carrier has seen so many customers willing to pay for its lie-flat, premium economy and domestic first-class seats, its Medallion elite status members have found complimentary upgrades hard to come by.
“As we continue to look, reevaluate even the [cabin layouts] on the airplanes and put more and more premium,” Hauenstein said, “we are able to do two things: one is sell more [seats], and two is accommodate more of our heaviest frequent flyers with upgrades, which is something we want to continue to do.”
As of last fall, around 75% of Delta’s first-class seats went to customers who paid for their ticket outright, the carrier reported. Fifteen years ago, only 12% paid for their seats.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.