Delta says that 57% of its first class seats are filled by paying passengers. (Image: Delta)
Is there some kind of stigma attached to the phrase “basic economy”? Delta uses that designation for the lowest level of the new branded fare categories it introduced last winter, and officials said this week the airline has been successful in moving customers into the higher fare categories.
Those include Main Cabin economy, Delta Comfort+ (extra-legroom economy), First Class and Delta One (international business class). The Basic Economy fare does not allow for changes, refunds or advance seat selection. The new designations took effect in March.
According to the Atlanta Journal-Constitution, Delta executives said in an earnings conference call this week that almost two-thirds of ticket buyers opt for Main Cabin economy over Basic Economy, and overall, the new fare categories have brought an extra $56 million into the company’s coffers during the second quarter.
More travelers are also buying first class seats rather than using SkyMiles upgrades, they noted, with paying customers now accounting for 57 percent of front-cabin seats, up 13 percent. (The bad news for frequent flyers: fewer spaces available for upgrades.)
Meanwhile, Delta also said that because pilots have rejected a new labor contract, it will cancel orders for 60 new planes, including 20 Embraer E190s and 40 737-900ERs.
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Yes. That is how websites make money: advertisements (and even more money when people click on the links). You expect Chris to work and provide the great information on this site for free?
My guess is DL and pilots will reach an agreement fairly quickly, and the order with Boeing will go ahead as planned. This is just my intuition
The first sentence of my post was sarcasm. This decision was not made on a whim. In fact, when DL placed the order some time ago, it was conditional on the pilots accepting their contract. So it was well planned out
Well run organizations, who know what they are doing, don’t make major decisions on a whim.
Boeing will have no problem reselling the 737-900ER aircraft. There are many airlines who need these planes and would like to take delivery ASAP. The Embraer E190 aircraft have 96 seats in dual class configuration which is about 33% fewer passengers than a Boeing 737-700 or an Airbus A-319. Delta probably wants these aircraft for use on the lightly patronized Boston-New York- Washington air shuttles. I doubt that other airlines are beating down Embraer’s doors to acquire these aircraft.
It’s a perfect formula. Merge with your competition to wipe them out, have so many customers that for upgrades it’s near impossible unless you pay more or have a lot of miles but basically make coach so crappy that it forces customers on long haul flights to pay for first class instead of coach.
It’s a shame how much the airlines is forcing us all to either not fly anymore or just have to pay more for less.
Again we are all at blame for allowing the government to let these airlines merge. The lesson here, if someone screams that they will go broke if not allowed to merge, just let them go broke. As we have learn with Braniff, Eastern and Pan Am there will always be someone that will take over so just let them go away.
Does every post need to have a credit card ad at the end?
Yes, I’m sure DL made this decision on a whim without considering its business and capacity needs. DL is the best run airline in the country. They know what they’re doing
Truly, if you chase Medallion status on Delta for “upgrades” you are a fool.
The explanation for cancelling the plane orders seems incredibly childish and unbusinesslike. If they have a business need to add the capacity, they should buy the planes. Purchasing aircraft takes a while, if they resolve this contract dispute next week and they need the planes next year they’ve just shot themselve in the foot. Unless this is just an EXCUSE to hang their hat on, when they really decided they can squeeze existing load factor tighter instead.