Delta Airlines, American Airlines and Delta Airlines are trying to grab most premium customers in an airline arms race. Now, the highly profitable airline business after bearing losses of billions during 2000s, the airlines are investing huge money into their new flights, fancy seats having more legroom, lounges and many other perks, mostly to attract the wealthy travelers. United Airlines has raised stakes after the announcement of retrofitting more than hundred planes by adding up 1600 premium seats in their 250 jet planes. The airlines have planned to start a latest 50 seated jet mostly consisting of premium seats for some routes famous with the business travelers. This decision is a part of larger airline industry trend for providing more space & best in class service to the wealthy passengers who have the largest share in airline revenue.
The chief commercial of United Airlines, Andrew Nocella, said the executives have decided that United Airlines has shortage of the business class seat into such a premium market & the problem has been solved now. This will help the passengers as well as the bottom line, says Andrew Nocella. The airline analyst working in Atmosphere Research, Henry Harteveldt, said that the announcement by United Airlines has challenged Delta Airlines, and is the front runner between the top three airlines for its performance and stronger profit margins. It was bigger news. United Airlines is targeting Delta & its strengths with the premium travelers, says Harteveldt.
The executives of Delta Airlines said that they have raised the premium seating capacity from 9% to about 30% since 2011, & they are selling 60% of these seats from the previous 13% of seats. They said that more such corporate accounts have let their employees to travel through premium class which has boosted the revenue of Delta Airlines twice the revenue generated from its economy seats.