Delta bets on premium travel as 'shock absorber' for economic downturn

Delta is doubling down on more profitable premium travel as it looks to shore up its defenses against an economic downturn. CE Ed Bastian told Reuters the US carrier will have premium seats on every plane it flies starting this summer. Currently, dozens of 50-seat planes, accounting for about 2% of Delta's fleet, don't have those seats. In all, the Atlanta-based carrier, which reports quarterly earnings on Thursday, said it will offer 15,000 more premium seats a day across its network this year versus the pre-pandemic period. It declined to share more details. Bastian said Delta wants to attract travelers who are willing to pay for something other than just a seat, helping drive up its profits. "It also takes us out of the commodity trap, where we're just trying to win this battle based only on price," he said. It is betting that spending by affluent leisure customers, who have been flocking to premium cabins, will be less impacted in any potential downturn. Last December, President Glen Hauenstein called them a "great shock absorber" in the face of weak corporate bookings. Rivals United and American Airlines are also chasing premium revenue. United expects to have 53 premium seats per flight in North America by 2026 - up 75% from 2019. American has plans to increase premium seats by 45% on its long-haul flights by 2026. "Travel at large, not just in terms of air travel, but the entirety of it is holding, if not growing as a percentage of overall GDP," Vasu Raja, American's CCO said. "It's really striking in this world that we're in where inflation is high."<br/>