Choose: Basic economy, standard economy or…. something a little better, but pricier?
Delta Air Lines plans to introduce a new, third-class to its coach product in the coming months, executives confirmed Wednesday.
It’s part of the carrier’s larger unbundling plan, which could eventually see Delta offer customers a host of boarding options — “good, better, or great” as they call it — across every segment of its fleet.
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“We have all these different cabins on the plane. But we really think there’s another way to separate them,” explained Delta president Glen Hauenstein, speaking in New York on Wednesday at the Atlanta-based carrier’s annual investor day.
It’s a change that could mean a wider menu of ticket options when shopping for airfare. But it may leave customers wondering if they will eventually see higher prices for the services included in the airline ticket.
Trying a new ‘good, better, better’ concept
Delta will begin trials of these new “subclasses” of rides in 2025, Hauenstein said. He noted that the carrier plans to roll out the concept “bottom-up, top-down” — meaning, coach first.
Today, like its top competitors, Delta already offers two main coach products: premium economy and basic economy. The latter offers certain benefits such as SkyClub access, SkyMiles earnings and generous seat selection for travelers availing themselves of a low-cost Delta ticket.
Basic economy was, from the start, a product created in the 2010s as a way for major network airlines to compete more with low-cost carriers that offer low-cost, no-frills fares.
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But with the developing technology used, airlines are finding new ways to offer a wide menu of ticket types, with different benefits – and different services that are not included.
For starters, Delta plans to test a coach product that will be the opposite of basic economy: a compact main cabin class. better advantages over a standard coach ticket (or, at least, what a standard coach ticket might be in the future).
“We’re in the middle in terms of the coach product, the main cabin product,” Hauenstein said Wednesday, referring to the existing basic economy option. “But [could] we have a ‘best’ brand in that category – don’t we really?”
What exactly would a premium cabin product look like at Delta? Could we see new benefits such as snack or beverage options? Could it include something as simple as a free tote bag? Can Delta take away certain services that are currently included in a regular coach ticket – making you buy up to the “maximum” cabin fare to get those benefits?
It’s too early to tell: Delta isn’t making an official announcement about its plans to create new ticket “subclasses” just yet.
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“We’re going to test and learn along the way,” Hauenstein said.
It’s worth noting that Delta’s competitor American Airlines currently sells a “prime choice” ticket that comes with benefits such as an earlier boarding group, free access to its Extra Large Cabin seats, and free guaranteed same-day flight changes.
In addition to selling basic economy tickets, Delta currently offers customers premium cabin tickets that are fully refundable, as shown below. It offers similar cashback charges for other cabins, too.
But the airline’s long-term vision is to expand this “good, better, better” fare idea beyond coach. By the end of 2025, in fact, Hauenstein said the carrier hopes to test new sections of its Comfort Plus class of aircraft.
It’s part of Delta’s efforts to improve its profitability, which has led the US airline industry in recent years.
“I think over the next few years you’re going to see us … really exploring what consumers want in their wallets, and what they’re willing to pay,” Hauenstein told analysts on Wednesday. “I think we will transform ourselves in the next three to five years.”
The news comes after Hauenstein appeared to scoff at Delta’s scheduled ticket “classes” when asked, in a July earnings call, whether Delta had considered a “basic business” fare that wasn’t included.
All in all, it is worth checking whether these changes end up being in favor of customers – or whether passengers end up having to pay more for certain services included in today’s ticket price. Again, these tests are expected to take place in the coming years.
Delta’s new premium credit card on the way?
Delta officials also used Wednesday’s investor day to present a little intrigue about the future of American Express’ credit card portfolio.
Currently, the airline’s top consumer credit card is Delta SkyMiles® Reserve American Express Card. It carries an annual fee of $650 (see rates and fees) and comes with perks like an annual companion ticket for Delta and SkyClub access (though limited to 15 annual visits starting Feb. 1, 2025).
The airline also offers low-cost cards, such as Delta SkyMiles® Platinum American Express Cardwith low annual fees.
“We have a Reserve Card out there,” Hauenstein said Wednesday.
“But is there a better card?” he pondered aloud. “We’ll put our thinking caps on that.”
Delta has an incredibly profitable partnership with Amex. The carrier expects to raise more than $7 billion this year through the bond, up from $4 billion five years ago in 2019. Long term, the carrier is poised to make $10 billion a year through its Amex deal.
While it’s almost impossible to think of a credit card with a significantly higher annual fee than the Delta Reserve Amex, the company has consistently tapped into its affluent customer base. It says customers swipe their Delta Amex cards to earn up to 1% of US gross domestic product.
Related reading:
For Delta SkyMiles Reserve rates and fees, click here.
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