Dive Brief:
- Delta Air Lines reaped the benefits of its loyalty program and premium offerings as operating revenue climbed climbed 9.4% year over year to $15.6 billion in Q4 2024, according to a Friday earnings report.
- Premium services accounted for $5.2 billion in revenue in the fourth quarter ending Dec. 31 as passengers flocked to high-end experiences. Revenue growth from premium products outperformed the main cabin by 6 percentage points.
- The airline’s loyalty program brought in over $3.8 billion in revenue in fiscal 2024, increasing 11% from 2023.
Dive Insight:
Delta adjusted its strategy to meet consumers’ shifting preferences for luxury experiences in 2024 with premium seats, airport lounges and loyalty program updates for business flyers.
The result was a boost to customer satisfaction and to the company’s bottom line. In May 2024, J.D. Power recognized the airline for high customer satisfaction among first-class and business flyers.
“Consumers are continuing to prioritize premium experiences, and our core customer base is in a healthy financial position with travel remaining a top spend category,” CEO Ed Bastian said on a Friday earnings call. “Corporate travel continues to improve and Delta is well-positioned as the business carrier of choice.”
Delta is also driving more engagement with its loyalty program.
“As brand preference continues to grow, we are driving deeper levels of engagement and our SkyMiles membership is attracting a younger consumer,” Bastian said. “Deeper engagement with Delta drives higher customer satisfaction, reinforces loyalty and creates greater lifetime customer value.”
The airline was also the most on-time North American carrier for the fourth year running, an important metric impacting customer satisfaction, according to a Cirium report released last week.
“In the airline industry, on-time arrival and completion factors aren’t just operational metrics — they’re the cornerstones of customer satisfaction and operational efficiency,” Mike Malik, CMO of Cirium, said in an email.
“Timely arrivals alleviate the stress of missed connections and disrupted schedules, especially for time-sensitive travelers,” Malik said. “Airlines that consistently perform on time reinforce their reputation for reliability, which builds customer loyalty.”
