Delta hints 'basic business' fare could be on horizon

16.07.2024 - 12:40 / thepointsguy.com / Glen Hauenstein / Delta I (I)

Delta Air Lines' premium cabins could be ripe for "unbundling" — the airline industry trend that's seen passengers increasingly paying for services once included in the price of a ticket.

For decades, it's afflicted passengers in coach, from the introduction of checked bag fees in the 2000s to more restrictive tickets rolled out in the 2010s that stripped away free perks like complimentary seat selection, or — on some airlines — a free full-size carry-on bag, in exchange for a cheaper base fare.

Could a similar trend be on its way to first or business class?

Last week, Delta leaders seemed to signal that some sort of "business light" or "basic business" (our terminology, not Delta's) could be around the corner.

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To be clear, nothing has been announced yet.

But last week, on the company's second-quarter earnings call, a Wall Street analyst asked Delta president Glen Hauenstein whether the carrier might ever consider bringing unbundling to its front cabin.

Hauenstein acknowledged those talks are, in fact, in the works. He even went so far as to tease a potential announcement at Delta's fall Investor Day, the company's annual shareholder meeting at which executives typically share detailed future plans.

"We've talked conceptually about that," Hauenstein said. "I think we'll be giving you more details. … But we're not ready to talk about the details of those plans moving forward. Investor Day this year should be very exciting."

As you might expect, Hauenstein's comments on the topic have generated a lot of buzz among industry followers — and speculation on what this could mean for Delta One, First Class and Premium Select passengers.

While no firm details have been shared, any such changes could introduce an additional layer of decision-making for customers who likely take "all-in" pricing for granted when booking expensive business-class fares.

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Over the course of this century, airlines have methodically unbundled services in the main cabin.

Following the advent of checked bag fees in the 2000s amid rising fuel prices and the economic crisis, Delta and its competitors rolled out restrictive basic economy fares in the 2010s as a way to better compete with the budget airlines — changes that required passengers flying in coach to look a lot more closely at what's included (and what's not) when booking a flight.

But passengers purchasing a premium ticket on Delta (and its legacy competitors in the U.S.) can typically book worry-free, with the higher-end tickets generally all-inclusive.

Sure, Delta does already offer an upsell to passengers flying in Delta One to make the ticket