Delta Air Lines predicts premium passenger revenue will overtake main cabin by 2027

Yahoo Finance11-21 03:34

Refundable tickets, extra leg space, and free boozy beverages have featured prominently in airlines' multiyear strategies as executives announce new premium passenger investments to woo travelers and ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2485124274?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/OO4c6hTDNAujLN3hO1Tz2A--~B/aD01NTA0O3c9ODI1NjthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-images/2020-04/787cafa0-8ac1-11ea-bcdf-a4c8f934d0be","is_english":true,"pubTime":"2024-11-21 03:34","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2485124274","market":"us","top_or_hot":-1,"title":"Delta Air Lines predicts premium passenger revenue will overtake main cabin by 2027","media":"Yahoo Finance","content":"<div>\n<p>Refundable tickets, extra leg space, and free boozy beverages have featured prominently in airlines' multiyear strategies as executives announce new premium passenger investments to woo travelers and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/delta-air-lines-predicts-premium-passenger-revenue-will-overtake-main-cabin-by-2027-193428952.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Delta Air Lines predicts premium passenger revenue will overtake main cabin by 2027</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDelta Air Lines predicts premium passenger revenue will overtake main cabin by 2027\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-21 03:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/delta-air-lines-predicts-premium-passenger-revenue-will-overtake-main-cabin-by-2027-193428952.html><strong>Yahoo Finance</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Refundable tickets, extra leg space, and free boozy beverages have featured prominently in airlines' multiyear strategies as executives announce new premium passenger investments to woo travelers and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/delta-air-lines-predicts-premium-passenger-revenue-will-overtake-main-cabin-by-2027-193428952.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DAL","symbol_name":"达美航空","start_time":0,"source_url":"https://finance.yahoo.com/news/delta-air-lines-predicts-premium-passenger-revenue-will-overtake-main-cabin-by-2027-193428952.html","article_id":"2485124274","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/OO4c6hTDNAujLN3hO1Tz2A--~B/aD01NTA0O3c9ODI1NjthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-images/2020-04/787cafa0-8ac1-11ea-bcdf-a4c8f934d0be"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485124274","pubTimestamp":1732131268,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Refundable tickets, extra leg space, and free boozy beverages have featured prominently in airlines' multiyear strategies as executives announce new premium passenger investments to woo travelers and investors.During Delta Air Lines'  2024 investor day, the company laid out its vision for a \"customized experience\" for travelers. Delta said it expects premium ticket revenue to exceed main cabin ticket revenue by 2027.“Just to be clear, we’re not going to have more premium seats than main seats,” CEO Ed Bastian said at a media roundtable, noting that premium revenue will be more diversified. “Premium could be the American Express card transaction. It could be our [seat] load. It could be other ways in which we transact or engage with customers in our ecosystem as compared to just main cabin, which used to be the dominant form in our industry.”Delta believes the premium push will impress customers and lead to margin improvement — a key metric shareholders track to gauge earnings growth.Th","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"DAL":"达美航空","UAL":"联合大陆航空","JBLU":"捷蓝航空"},"translate_title":"达美航空预测到2027年高级客运收入将超过主舱","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DAL":1,"JBLU":0.9,"UAL":0.9},"content_text":"Refundable tickets, extra leg space, and free boozy beverages have featured prominently in airlines' multiyear strategies as executives announce new premium passenger investments to woo travelers and investors.\nDuring Delta Air Lines' (DAL) 2024 investor day, the company laid out its vision for a \"customized experience\" for travelers. Delta said it expects premium ticket revenue to exceed main cabin ticket revenue by 2027.\n“Just to be clear, we’re not going to have more premium seats than main seats,” CEO Ed Bastian said at a media roundtable, noting that premium revenue will be more diversified. “Premium could be the American Express card transaction. It could be our [seat] load. It could be other ways in which we transact or engage with customers in our ecosystem as compared to just main cabin, which used to be the dominant form in our industry.”\nDelta believes the premium push will impress customers and lead to margin improvement — a key metric shareholders track to gauge earnings growth.\nThe airline anticipates 85% of revenue growth in 2025 will come from the additional premium seats, which may help the business meet or exceed its pre-pandemic average operating margin of 14%. \nDelta's revenue growth from premium offerings has continued to outpace revenue growth in the main cabin. In the third quarter, revenue from premium ticketing grew 4% year over year to $5.3 billion, compared to a 5% decline in main cabin passenger revenue, which came in at $6.3 billion.\nThe airline is prioritizing premium experiences as 5% more travelers have taken to the skies in 2024 than in 2023, based on TSA throughput data.\n“The industry is actually catching up with the ability to sell its products in a very different way,” Delta president Glen Hauenstein said. “And so we’re going to try our darndest not to alienate customers as we move along this, but just provide them more choice.”\n\nPremium segment is 'healthy and growing'\nDelta isn’t the only air carrier piloting perks-forward experiences. \nJetBlue (JBLU) management recently detailed additional steps it took to generate demand with premium consumers.\n\"Our premium offerings between preferred seating, even more space, and Mint [its first-class seating] all continue to perform well, further evidence that our customers' desire for premium offerings is healthy and growing,\" JetBlue CEO Joanna Geraghty told shareholders during the company's third quarter earnings call.\nRead more: Best airline credit cards for November 2024\n\n\n\n  Delta Air Lines flight 0958, from Atlanta to Melbourne, Fla., prepares to depart with only a handful of passengers on board, on March 21, 2020. (Getty Images)\n \n\n  Joel Carillet via Getty Images\n \n\nMeanwhile, United Airlines (UAL) continues to see premium cabin revenue outperform the rest of its travel tiers during the third quarter and record levels of spending among co-branded credit cardholders.\n\"On capital allocation, our United X plan is working, and the airline industry is in the midst of a positive transformation,\" United Airlines CFO Mike Leskinen said during the airline's third quarter earnings call. \"A de-commoditization of customers are choosing United based on the wide selection of products from premium international seats to flexible travel for domestic business travelers and basic economy for our price-sensitive customers.\"\n\n\n\n   StockStory aims to help individual investors beat the market.\n  \n\nClick here for the latest stock market news and in-depth analysis, including events that move stocks\nRead the latest financial and business news from Yahoo Finance","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"Business Data","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485124274"}