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.
Related reading:
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app