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Delta Air Lines held its 2024 Investor Day today. It’s always interesting to look at what Delta shares as it provides some insights into the airline’s operations, what’s to come, and what it feels is working well. It’s no secret that getting an upgrade has become an increasingly rare event, but it is fascinating to see that Delta is currently monetizing 88% of these premium seats.
Only 12% of Delta’s passengers receive upgrades. This has almost completely flipped since 2011 when Delta was selling only 14% of premium seats and granting upgrades to 86% of the passengers up front. Not surprisingly, revenue has increased along with this lack of upgrades and Delta is analyzing how to monetize the rest of those seats that are going to elite members on a complimentary basis. Delta executives claimed that 74% of First Class seats were being sold in 2022 and if this trend continues, complimentary upgrades will soon become a thing of the past. I know that I have not even tried for an upgrade in at least seven or eight years and buy Business or First on every flight.
It’s also interesting to note the demographic shift around purchasing these seats. Millennials value experiences more than items and they are willing to pay for premium experiences. Millennials are wealthier than prior generations were at their age and (along with Gen Z) they are Delta’s fastest growing customer segment with 66% willing to spend more for luxury travel.
Anthony’s Take: This is not surprising to anyone who flies regularly and takes a peek at upgrade lists. Few passengers clear upgrades to First Class and Delta like other US airlines has learned to successfully monetize these seats.
(Image Credits: Delta Air Lines.)
(H/T: View from the Wing.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
1 comment
Did they thank their loyal customers to add a little salt in the wound? Without upgrades, exactly what is high level elite membership supposed to offer as an enticement that you can’t get from a cobranded credit card?