Delta’s End Goal With Its Fare Class Updates is to Unbundle Business Class

Yesterday, Delta announced an update to its fare classes and cabin brandings. Although the changes were fairly minimal, this appears to be just a portion of Delta’s larger ambition of unbundling other parts of its fares.

First, here are the new names for each cabin:

There aren’t a lot of changes here. The only notable ones are Comfort Plus becoming Delta Comfort and First Class becoming Delta First.

It’s important to note though, that “Delta Main” has three types of fares within it: Basic, Classic, and Extra.

• Delta Main Basic: This is the equivalent of Basic Economy. Restrictions on seat assignments, cancellations, MQD earnings, and others are the exact same.
• Delta Main Classic: This is the equivalent of the former Main Cabin fare. You’ll get your 5 MQDs per dollar, the ability to choose a seat, an eCredit for when you cancel, and the other usual stuff.
• Delta Main Extra: This is the refundable option, which comes along with 7 MQDs per dollar and same-day standby.

These fare classes go into effect for itineraries on or after October 1, 2025.

As I said, this isn’t really much of a change. Each fare class has existed previously, and the biggest change for each is the branding. However, I do think Delta is aiming for something bigger with these changes.

“Delta One Basic”

Delta has previously flirted with the idea of unbundling its Delta One product. During last year’s investor day, they shared their goals for “further segmentation aligning value to price” and to “give customers more choice.” This would span across all products, from Basic Economy (I guess I gotta say “Delta Basic” now), all the way to Delta One.

We’ve seen hints elsewhere, through earnings calls and targeted surveys sent to customers regarding premium cabins.

Note that this isn’t a new concept in the airline industry. Airlines like Qatar, Finnair, and others have unbundled premium, business class fares. Some of the “basic” fare types they offer have restrictions on lounge access, seat selections, and refunds. I assume Delta would go a similar route with these offerings if this unbundling were to happen.

I have a couple of thoughts on this.

• First, I wonder what implications this would have on corporate travel. Corporate policies are often laid out to have their clients and employees fly on a certain fare class, whether that’s a refundable premium economy fare or the cheapest business class fare. In the case that Delta One Basic were to become a thing, business travelers who typically are entitled to a certain Delta One fare could potentially see changes in their travel experience.
• Second, this is an opportunity for Delta to capitalize on the roaring premium leisure demand that has come about since the pandemic, while business travel demand is still dragging its feet.

Now, will the average price point for Delta One Basic be offered at a slightly lower rate compared to the current Delta One fares? Or, will they be the same as the current Delta One fares, and passengers looking for the regular Delta One have to start paying extra? We’ll have to see.

The changes we saw yesterday aren’t much, but I expect this to only be the start. Unbundling business class isn’t new, and Delta has expressed interest in this area over the past year. For now, the airline will study how this marketing works in Main Cabin, and we’ll have to wait and see for future fare class changes.

Featured image by the author.