Executives at American Airlines and Delta Air Lines expect more quality opportunities in 2026.
The two airlines expect strong demand for premium air travel – from premium economy class seats to new flagship suites on American Airlines’ new Boeing 787-9P aircraft, where the “P” stands for “premium” – to continue into next year.
“As a leader in premium travel, we’re going to have a great year,” Delta CEO Ed Bastian said at a Morgan Stanley investor conference on Wednesday.
Speaking at a Goldman Sachs investor conference later in the day, U.S. Chief Financial Officer Devon May said: “We’re excited to be a premium global airline. We believe that’s where demand is going.”
Delta is at the forefront of U.S. airlines’ shift toward premium travel. The airline began the process in the years following its merger with Northwest Airlines in 2010, and other airlines have followed the trend to varying degrees in the years since. That shift has accelerated in the wake of the COVID-19 pandemic, with even stalwart budget airlines including Southwest adding seats with extra legroom and considering first class cabins.
Allegiant Airways, Frontier Airlines, JetBlue Airways and Spirit Airlines have also added some form of premium inflight product to their aircraft. Alaska Airlines is merging with Hawaiian Airlines and plans to debut a “wonderful new international experience” on its 787s sometime next year.
Delta’s main rivals American Airlines and United Airlines have both introduced upgrades to their most polished products over the past few years, even including a limited number of “First Class Light” seats. United Airlines is taking it a step further in economy class on its mainline fleet by introducing in-seat entertainment screens, rather than just streaming entertainment on travelers’ personal devices.
“Every airline in the U.S. has changed its strategy after COVID-19,” Bastian said. “You talk about some of the other airlines, whether it’s Spirit Airlines going through its second bankruptcy, or Frontier saying they’re going to have more of a premium product, Southwest changed its mind, American changed its mind – everyone except Delta changed its mind.”
Bastian showed his trademark swagger and even described United’s management as “clever” for copying Delta’s approach.
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“Manchester United are trying their best to emulate us and I don’t blame them,” he said. “If I were Delta, I would follow their lead.”
Bastian did not comment on his airline’s shortcomings in quality service. Its Delta One business class suites, while still excellent, date back to 2017. The airline rolled out a series of mostly cosmetic updates last year.
And, although Delta recently opened four business-class-only lounges, only two of its five largest international airports are at New York’s JFK and Seattle-Tacoma International, according to flight schedule data from aviation analytics firm Cirium. There is currently no Delta One lounge in Atlanta, Delta’s largest long-haul international gateway.
American, widely seen as the third-largest U.S. airline after Delta Air Lines and United Airlines, hopes to catch up with the new flagship suites and premium economy seats it debuted on the 787 earlier this year. They will begin flying from JFK to Los Angeles International Airport (LAX) on December 18 on the airline’s new Airbus A321XLR.
May even acknowledged in comments Wednesday that American Airlines is in a premium position.
“I think if we had more [premium] Today, our profits today will be higher,” he said.
May said American sees 2026 as an execution year, when it will introduce more A321XLRs and 787s as well as new premium products to its network. The airline also plans to start retrofitting its Boeing 777 fleet with the product.
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