Delta’s fourth quarter was also strong, with the airline reporting net income of $1.1 billion, up about 8 percent year-over-year, on total revenues of 11.4 billion.
Delta executives said they’ll work this year to increase revenue from existing areas of the strength. Here are some of the initiatives Delta executives highlighted Tuesday.
Delta’s revenue from premium products increased 9 precent in 2019, to $15 billion, higher than the 3 percent increase from economy class revenues. For now, Delta is pleased with the makeup of its cabins, but airline President Glen Hauenstein didn’t rule out the possibility Delta would add more extra-legroom seats if demand warrants it.
It could make sense, as premium travelers are some of Delta’s most loyal customers. The airline claims its data shows 70 percent of customers who fly in a premium cabin buy an “equal or better” product on a future trip, Hauenstein said.
Much of Delta’s revenue from its loyalty program comes, directly or indirectly, from its relationship with American Express, which buys points from Delta and awards them to its customers. Delta claims the relationship with American Express was worth about $4.1 billion in 2019.
The airline’s bare-bones fare is here to stay, executives said, even though Delta is increasingly positioning itself as the most premium U.S. airline.
In the past decade, Delta has spent a fortune to boost its presence at big-revenue coastal hubs in New York, Boston, Seattle, and Los Angeles.
After merging with Northwest Airlines in 2008, Delta was then the world’s largest airline, yet all of the company’s big hubs were in the interior of the United States.
Collected and summarized from the source below by Quynh Hoa https://skift.com/2020/01/14/how-delta-plans-to-best-its-record-setting-year/