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Delta aiming to sell more premium seats to offset recession risks - Reuters

Published 13/04/2023, 12:40 am
© Reuters.
DAL
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By Scott Kanowsky 

Investing.com -- Delta Air Lines, Inc. (NYSE:DAL) plans to offer premium seats on every plane it flies this summer, the U.S. carrier's chief executive officer Ed Bastian told Reuters in an interview.

In total, Reuters added that the Atlanta-based company will make 15,000 more premium seats a day available this year when compared to the pre-COVID era. Delta, which is due to post its quarterly results on Thursday, declined to provide further details.

According to Reuters, Bastian said the business is aiming to boost its profits by attracting wealthier passengers willing to spend on more services besides a seat on a flight.

Delta executives have previously noted that these more affluent customers could act as buffer against a possible slowdown in travel demand, with president Glen Hauenstein dubbing them a "great shock absorber" in December.

Over the next several years, Bastian said the contribution from Delta's premium cabin areas to its revenue will tick up by one to two percentage points annually. Premium seats currently make up 38% of Delta's passenger sales.

Shares in Delta were trading lower on Wednesday.

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