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48% of Delta Revenue From Coach, Down From 63% Six Years Ago. D1/FC is 32%.
“Flying coach? Your dollars mean less to Delta Air Lines than they used to. The economy class cabin is generating about 48 percent of Delta's revenue, down from 63 percent six years ago, Delta told investors on Thursday. While coach is still the largest source of the airline's revenue, the share of revenue generated from premium cabins like first and business class has nearly doubled to about 32 percent. Revenue from Delta's co-branded credit cards with American Express has also climbed.” https://www.cnbc.com/2018/12/14/delt...nd-surges.html |
What percentage is from fees, such as checked bag fees? |
I wonder if they are including C+ in “economy class cabin” for purposes of these statistics. |
Originally Posted by acrophobia
(Post 30534549)
I wonder if they are including C+ in “economy class cabin” for purposes of these statistics. Isn't C+ an "experience" like basic economy? |
The most telling metric is that DL now sells 60% of F, up from 13%. For those complaining about the lack of Medallion upgrades, this is the clear reality and demonstrates the "why".
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C+ is Premium as Delta Air lines defines coach as: Main Cabin and BE. Premium seats are: Delta One/FC, Delta Premium Select and Comfort+ in Delta's Investor day 2018 presentation
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Originally Posted by Grouchy
(Post 30534594)
C+ is Premium as Delta Air lines defines coach as: Main Cabin and BE. Premium seats are: Delta One/FC, Delta Premium Select and Comfort+ in Delta's Investor day 2018 presentation
I'd also be very curious to see a domestic breakdown of revenue - and also an affirmative stance whether or not domestic F is above breakeven (but we'll never get that, and my guess is the answer is still no). |
What isn't clear is how much of the costs are attributable to FC vs Coach. I doubt there is a huge difference, but it would be interesting to see.
This line says a lot for upgrade-seekers: "The carrier used to sell about 13 percent of its first-class seats and now sells 60 percent, Delta's president, Glen Hauenstein,said during an earnings call in October." |
Originally Posted by MSPeconomist
(Post 30534537)
What percentage is from fees, such as checked bag fees? I don't recall a full revenue breakdown. |
Indeed no full revenue breakdown.
$6B Premium revenue with 9% Premium seats in 2011 when EC launced to currently $14B Premium revenue with 28% Premium seats and more than 30% premium seats planned by 2023. In theory this should be good for medallions upgrades. Revenue upside is $400 to $500 million for each point shift in premium product mix in external channels. |
Originally Posted by Often1
(Post 30534586)
The most telling metric is that DL now sells 60% of F, up from 13%. For those complaining about the lack of Medallion upgrades, this is the clear reality and demonstrates the "why".
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Am I correct in my assumption here that this is basically:
"We took a bunch of preexisting coach seats with a little extra leg room, officially made that significant percentage of the aircraft a 'premium cabin'...and now, surprise, we are selling a greater percentage of premium seats and fewer coach seats" Since on WN, "every seat is a first class seat", their investors must be floored that 100% of their seats sold are premium instead of coach. |
Originally Posted by Grouchy
(Post 30534673)
Indeed no full revenue breakdown.
$6B Premium revenue with 9% Premium seats in 2011 when EC launced to currently $14B Premium revenue with 28% Premium seats and more than 30% premium seats planned by 2023. In theory this should be good for medallions upgrades. Revenue upside is $400 to $500 million for each point shift in premium product mix in external channels. Sorry but I don't consider C+ to be an upgrade. |
Originally Posted by MSPeconomist
(Post 30534949)
Sorry but I don't consider C+ to be an upgrade. |
Originally Posted by pgh234
(Post 30534904)
Am I correct in my assumption here that this is basically:
"We took a bunch of preexisting coach seats with a little extra leg room, officially made that significant percentage of the aircraft a 'premium cabin'...and now, surprise, we are selling a greater percentage of premium seats and fewer coach seats" Since on WN, "every seat is a first class seat", their investors must be floored that 100% of their seats sold are premium instead of coach. Yes, but in fairness, I doubt it is contributing much to the stat. I have to imagine their paid C+ loads are crazy low. But it definitely makes up a few percentage points of the difference. |
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