9-Mar-2016 4:11 PM

Delta Air Lines expects merchandising service revenue/pax will increase to USD15/pax by 2018

Delta Air Lines stated (08-Mar-2016) it is investing in segmentation and other ancillary opportunities to provide an additional sources of revenue to allow Delta to capture a greater portion of travel spend. The carrier said Branded Fares are on track to drive USD2.4 billion in revenue by 2018 compared to USD1.2 billion in 2016. Merchandising service revenue per passenger stood at USD6.35 in 2013, increasing 30% to USD8.30 in 2015. This is expected to increase by 80% to the 2018 goal of USD15. Future initiatives include increasing the number of premium class seats, improving distribution effectiveness and expanding basic economy across the system from 1026market at present. The carrier realised USD400 million in incremental revenue from American Express in 2015 and expects total benefits to double between 2015 and 2020.   [more - original PR]

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