Delta has trained its passengers to pay premium prices. Here’s how it plans to get even more from them
Delta Air Lines has successfully trained its customers to pay more for premium seats, achieving 20% higher revenue per seat than competitors. The airline's Chief Commercial Officer, Joe Esposito, is exploring new strategies to diversify revenue, including enhancing premium services and partnerships. While focusing on loyal customers, Delta is also mindful of maintaining appeal to its broader clientele.
- ▪Delta Air Lines has increased its revenue per seat by 20% compared to U.S. competitors.
- ▪The airline's premium revenue grew 14% year-over-year, nearly matching main cabin revenue.
- ▪Delta's SkyMiles loyalty program has 120 million members, fostering strong customer loyalty.
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In the past decade and a half, Delta Air Lines has been wildly effective in training its customers to pay more for its premium seats. The airline now gets 20% more revenue per seat than its U.S. competitors, and its premium cabin is about to overtake its main cabin for the first time in Delta’s 101-year history.Recommended Video But other airlines, notably United Airlines and American Airlines, are using a similar playbook, to similar effect. So Delta’s recently minted Chief Commercial Officer Joe Esposito, a 30-year company veteran, has been looking for new ways to push the airline’s yearslong strategy to diversify its revenue away from main cabin ticket sales.
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