Key Takeaways One way or another, Delta President Glen Hauenstein said, the prices of main cabin airfare are likely to rise because their low profit margins are putting pressure on carriers.Delta reported that revenue from "premium" tickets surpassed revenue from basic tickets in the fourth quarter. Basic airfares may not stay at current prices for long. The price of domestic, main cabin seats will likely increase as air carriers adjust to remain viable, Delta Air Line (DAL) President Glen Hauenstein s ...

Core Insights - Delta Air Lines anticipates that revenue from premium airfare will surpass that from the main cabin within one to two quarters, reflecting a significant shift in consumer demand [1][7] - Premium airfare revenue increased by 9% year-over-year to $5.8 billion, while main cabin sales decreased by 4% to $6.1 billion [1][5] - The airline industry is experiencing a trend where affluent consumers are opting for better seating options, contributing to the decline in main cabin sales [2][3] Industry Trends - The shift towards premium products is evident, with airlines reducing capacity in the coach section and focusing on enhancing their premium offerings [3][7] - Delta's President Glen Hauenstein indicated that most of the airline's growth will come from premium sectors in the upcoming year [2][4] - Corporate travel has seen an uptick, which has positively impacted sales in the main cabin of domestic flights [5] Financial Performance - Delta's overall revenue grew by 6% year-over-year to $16.67 billion, exceeding expectations [5] - The company projects revenue growth of 2% to 4% year-over-year for the final quarter [5] - Delta's shares rose over 4% on the announcement, reflecting positive market sentiment, with a total gain of approximately 17% over the past year [6]