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48% of Delta Revenue From Coach, Down From 63% Six Years Ago. D1/FC is 32%.

48% of Delta Revenue From Coach, Down From 63% Six Years Ago. D1/FC is 32%.

Old Dec 14, 2018, 5:58 am
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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
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Old Dec 14, 2018, 6:33 am
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What percentage is from fees, such as checked bag fees?
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Old Dec 14, 2018, 6:38 am
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I wonder if they are including C+ in “economy class cabin” for purposes of these statistics.
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Old Dec 14, 2018, 6:48 am
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Originally Posted by acrophobia
I wonder if they are including C+ in “economy class cabin” for purposes of these statistics.
Isn't C+ an "experience" like basic economy?
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Old Dec 14, 2018, 6:52 am
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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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Old Dec 14, 2018, 6:55 am
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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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Old Dec 14, 2018, 7:05 am
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Originally Posted by Grouchy
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 be very curious to know the revenue contribution of C+. It can't be more than a couple percent.

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).
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Old Dec 14, 2018, 7:14 am
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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."
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Old Dec 14, 2018, 7:15 am
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Originally Posted by MSPeconomist
What percentage is from fees, such as checked bag fees?
The OP's CNBC link took the headline item directly from the Investor Day presentation yesterday. The materials were posted to the DL site as an SEC filing.

I don't recall a full revenue breakdown.
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Old Dec 14, 2018, 7:20 am
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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.
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Old Dec 14, 2018, 8:18 am
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Originally Posted by Often1
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".
Indeed - and medallions can ..... all they want but Delta is a business and this has proven to be a sound move on their part.
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Old Dec 14, 2018, 8:23 am
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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.
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Old Dec 14, 2018, 8:35 am
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Originally Posted by Grouchy
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.
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Old Dec 14, 2018, 8:39 am
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Originally Posted by MSPeconomist
Sorry but I don't consider C+ to be an upgrade.
You and me both. However, from Economy(or Economy Classic) to Premium Economy on a VS/DL Codeshare across the Atlantic, it is but that is usually an OpUp
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Old Dec 14, 2018, 8:42 am
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Originally Posted by pgh234
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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