Delta Eyes Segmentation in Premium Cabins as Demand Remains Strong

Atlanta – Delta Air Lines is planning to introduce new levels of segmentation within its premium cabins, a move that could redefine how travelers experience business class and first class on the carrier’s flights.

The airline, which pioneered basic economy fares over a decade ago, is now turning its focus to the front of the plane. According to Delta President Glen Hauenstein, the same approach used to diversify offerings in the main cabin could soon be applied to premium travel, where customer preferences and margins are proving more resilient.

“Premium has certainly been where our margins have continued to expand,” Hauenstein said during Thursday’s earnings call. “We’re highly focused on continuing to provide improved service to those customers and more segmentation.”

Delta’s premium seat revenue rose 6% in the first half of 2025, totaling $10.6 billion, while revenue from main cabin tickets fell 4% to $11.7 billion. These numbers reinforce the carrier’s long-held strategy of leaning into premium experiences and loyalty programs.

A New Era of Custom Business Class?

While Hauenstein did not disclose specific changes, the airline is testing and surveying travelers to explore how segmentation could work in business and first class. Possibilities could range from tiered pricing to unbundled perks like lounge access or upgraded seats with enhanced amenities.

Though Delta hasn’t confirmed such details, its approach is likely to mirror trends seen at United and American Airlines, which have begun rolling out next-gen cabins with more spacious suites and guest seating options. Virgin Atlantic, Delta’s partner, already offers “Retreat Suites” with space for small groups to dine or socialize mid-flight.

Still, some analysts are skeptical about offering stripped-down versions of premium seats.

“Airplanes are expensive,” said Henry Harteveldt, president of Atmosphere Research Group. “It’s a lot easier to give passengers a reason to pay more for your product than to pay you less.”

Keeping the Premium Edge

Delta CEO Ed Bastian confirmed the airline is continuously updating its top-tier offerings. “What we thought was state of the art six or seven years ago no longer is,” he said in an interview with CNBC. “Our product will be very, very nice.”

While Delta has not announced when the new premium segmentation will be rolled out, its emphasis on value, personalization, and innovation signals a significant shift in how U.S. airlines will approach high-end travel in the future.