The airline industry’s biggest winners are betting you’ll pay to fly in style
Subscribe to enjoy similar stories. There is a clear formula for running a winning airline in 2024. It’s paying off most for the biggest carriers.
Carving up cabins, catering to high-end travel, and putting a price on nearly every aspect of the flying experience has helped larger airlines haul in more cash from their planes. That is one reason why two companies, Delta and United, accounted for almost 85% of the U.S. airline industry’s profits in the first nine months of this year.
For fliers, the message is simple: “The more you pay, the more you get," Delta President Glen Hauenstein said this past week. Airlines are preparing for a record crush of travelers to descend on airports this Thanksgiving—a test of the way they have been battling for fliers’ business, which has changed dramatically since the Covid-19 pandemic. What was once a race to offer the cheapest tickets and capture the biggest volume of passengers is now all about trying to stand out with a superior flying experience.
The result has been a shakeout at the budget end of the industry—Spirit Airlines declared bankruptcy this past week—and a bonanza for bigger carriers flying high from selling first-and business-class tickets. Airlines that haven’t yet embraced the upselling approach are racing to catch up. Spirit told a bankruptcy court this week that “Project Bravo," a strategic pivot that includes a new suite of upscale bundles, is its ticket back to success.
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