In the past decade and a half, Delta Air Lines has been wildly effective in training its customers to pay more for its premium seats. The airline now gets 20% more revenue per seat than its U.S. competitors, and its premium cabin is about to overtake its main cabin for the first time in Delta’s 101-year history.
But other airlines, notably United Airlines and American Airlines, are using a similar playbook, to similar effect. So Delta’s recently minted Chief Commercial Officer Joe Esposito, a 30-year company veteran, has been looking for new ways to push the airline’s yearslong strategy to diversify its revenue away from main cabin ticket sales.
His initiatives include everything from testing out a plane with 44 first class seats on domestic flights, almost double the average, to landing more partnerships with other consumer brands. He is also looking to beef up Delta’s travel services business, making the meals it offers in-flight more gourmet and even servicing engines for rival airlines.
Esposito was instrumental in developing and implementing Delta’s “premium” strategy before becoming chief commercial officer. And the success of that approach has been undeniable: in Delta’s most recent quarter, premium revenue grew 14% year-over-year, coming within a hair of matching main cabin revenue, which only grew only 1%.
