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Empty premium seats proving costly for Delta Air Lines

by Richa 16. December 2013 06:14

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.

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Tags: delta air lines, premium seats

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