Key Takeaways
- According to Delta Air Lines president Glen Hauenstein, the carrier's domestic first class load factor is 92%, same as 15 years ago.
- However, back then just 12% of those seats were paid for. A decade and a half later, the ratio is flipped, with just 12% of domestic first class seats going to upgrades.
- Delta's first-class seats used to cost 13 times what coach seats did, but the airline brought down the separation between fare classes and found them easier to sell.
Road warriors used to have a pretty good shot at a free seat upgrade when flying Delta Air Lines. These days, not so much.
At Delta Air Lines' (DAL) Investor Day on Wednesday, president Glen Hauenstein said the carrier's domestic first-class load factor—which measures how many of its available seats are filled with passengers—is 92%, same as 15 years ago.
Back then, though, just 12% of those seats were paid for. A decade and a half later, the ratio is flipped, with just "12 points going to upgrades," Hauenstein said, according to a transcript provided by AlphaSense.
"We were charging 13 times more than the average coach seat at the time of booking," Hauenstein added. "So we brought that separation way down. We've made them much more affordable. And guess what, when you make something affordable, people want to buy it."
Delta Touts 85% Repurchase Rate by Frequent Flyers
According to its Investor Day presentation materials, 85% of Delta passengers sitting in premium seats intend to repurchase those seats.
Hauenstein explained this with a story about his first car—a "clunker," he said, recalling a 1966 Rambler. "But I keep buying better cars. I remember the first nice car I got and how it made me feel ... I think I've kept buying nice cars. I don't go back—I don't see a clunker in my future.
"What we've garnered from all this, now, years of experience with these premium products is once people are flying in them, they tend to not go back," Hauenstein said.
In other words, unless you're willing to pay for it, you're probably not going to get upgraded to domestic first class on Delta.