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Delta is improving the economy experience to get passengers to pay more

Nov. 07, 2019
2 min read
Delta Air Lines Airbus A330
Delta is improving the economy experience to get passengers to pay more
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Delta Air Lines sees a revenue opportunity in its rollout of long-haul economy class service improvements that it announced earlier this week.

While traveler comfort was a part of the reason for making the investment, Delta CFO Paul Jacobson told investors Thursday that there is a direct line from more comfortable passengers to higher fares and, in turn, better profits.

“Our net promoter scores have translated in direct correlation to the revenue premium we’re able to achieve over the industry," he said at the Baird Global Industrial Conference. In test markets, Delta has seen a 5-point improvement in its net promoter scores -- a measure of customer's loyalty to a brand and willingness to recommend it to others -- from the economy class improvements.

Put more simply, Delta says it is able to charge more for seats on its flights when people are more satisfied with the service.

Related: Delta's long-haul economy service has been upgraded

Welcome cocktails are no longer reserved for business class. (Photo courtesy of Delta Air Lines)

Delta made the changes to its economy service on flights of 6.5 hours or longer. Elements include a complimentary Bellini and hot-towel service shortly after takeoff, more meal choices with larger portions, snacks available throughout the flight and a goodbye chocolate before landing.

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Jacobson called the improvements "relatively unprecedented" in the U.S. airline industry.

Delta is already the most financially successful of the big three U.S. network carriers. The airline is rated investment grade -- a metric that gives investors confidence in the company and lowers its cost of debt -- and is known for innovative moves, from developing its own wireless inflight entertainment system to leading the industry on replacing cramped regional jets with larger models like the Airbus A220.

To date, neither American Airlines nor United Airlines have announced similar changes to their long-haul economy service.

Related: Sign up for the free daily TPG newsletter for more travel tips!

Featured image by NURPHOTO/GETTY IMAGES

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  • 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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  • $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.