Even though different airlines continue to invest heavily in premium
seats aiming to attract business travelers in a big way, this is proving
to be somewhat costly. The reason being that most of the airlines are
fearing loss of revenue as premium seats often go without passengers on
international routes. This situation has led to a major rethink among
the airlines on how to bring a turnaround in their fortunes. One such
airline to have been affected by this phenomenon of costly premium seats
going empty is none other than Delta Air Lines. In a recent
development, Delta Air Lines has indicated that it is not going to wait
any further for a major revenue boost that it desperately wants for its
long-haul fleet. The airline has stressed that it won’t hesitate in
doing away with some premium seats as the empty seats are proving to be
biggest hurdle in soaring its revenue.
Delta Air Lines recently held its investor meeting in New York. The
airline made it clear that it is no longer going to be a mute spectator
to its mounting losses and suffer in silence. The airline has come up
with a new strategy and is ready to expand its cheaper coach cabin so
that planes do not fly empty thus putting a stop to revenue losses. Glen
Hauenstein, Delta Air Lines’ Chief Revenue Officer, told at the
investor meeting that the empty premium seats on the affected flights is
rather significant and on average it is in the high 60 percent range.
Hauenstein said that the airline cannot put up with the losses and has
decided to reconfigure its planes. He said that this step is necessary
to match the service level and devise methods that would let the fliers
pay for the service that they are getting. He said that Delta Air Lines
has decided to effect these changes after deliberating on the cost
analysis factor and is now actively considering replacing premium seats
with low-fare coach class seats.