Delta’s Top Spenders Roll Up to the Plane in a Porsche

Delta is rolling out the red carpet for its biggest spenders — well, the red Cayenne anyway.

The world’s most profitable airline is increasingly focused on fliers sitting in front of the curtain. Delta said yesterday it’s upgrading Delta One, its long-haul business class product, with a series of VIP upgrades. The airline will increase its Porsche fleet for fliers making short connections across the tarmac by 75%, from 40 to 70 cars.

Delta’s also adding Missoni mini pillows, Blanton’s bourbon, Delta logo-emblazoned tableware and a new menu developed alongside a Michelin-starred chef (wagyu burgers, Taittinger Champagne-topped sorbet). Flights out of LAX will be the first to see the perks later this month, with a global rollout planned for early next year. 

The over-the-top expansion is part of a wider plan to make the front-of-cabin experience even more luxurious as airlines look to top spenders to bring in the bulk of their revenue. 

K-shaped Airconomy

Delta’s led the flock for decades when it comes to investing in its premium cabins, only amping up its efforts in recent years. Early next year, its new Airbus planes will feature bigger screens and plusher lie-flat seats — it’s considering upgrading other jets in its fleet, too. The push into premium has paid off:

• Premium ticket revenues rose 18% in the third quarter Delta reported earlier this month, while coach revenue increased 12% — and premium revenues edged out coach revenues despite taking up far less space on planes. Delta CEO Ed Bastian told investors that the top 40% of US households are “nearly $40 trillion wealthier than they were just a few years ago and increasingly prioritizing experiences, including travel.” 
• Rival airlines have also leaned into premiumization as revenue from top spenders surge. United, which is set to report third-quarter results next week, saw premium revenue growth outpace basic economy in the spring quarter. The airline last month launched its larger Polaris Studio business-class suites. Alaska Airlines, which is also overhauling premium seats, is aiming to make 60% of its revenue from high-end seats by 2030.

Upsell and Away: Restaurants have “Would you like to add avocado for $4?” Airlines have “Would you like to add a Porsche ride for $550?” As airlines look to increase premium profits, they’re creating expansive menus of customizations. Airlines are trying to create new options for customers to splurge within their cabin, and their primary focus is on the customers being served Blanton’s, not Biscoff.