Delta continues to explore a segmentation of fare offerings in premium cabins.
"It's all about giving people more choice, more pricing options and more products and services in every cabin.," Delta president Glen Hauenstein said during the airline's Q2 earnings call Thursday.
In the past year, the airline has been hinting about plans to unbundle domestic first class and international business class offerings. For now, Delta is keeping its plans close to the vest. Hauenstein said the carrier is doing surveys but declined to offer any other details.
In May, Delta renamed its main cabin products, effective Oct. 1, using the names Main Basic, Main Classic and Main Extra. Distinguishing features of the different products relate to ability to select a seat ahead of check-in; changeability and refundability; and boarding zones.
Hauenstein said the segmentation done in the main cabin is a template for what it will do in premium cabins.
Delta currently sells two products within its domestic first class cabins, a nonrefundable fare and a refundable one.
The airline similarly bifurcates its extra-legroom Comfort product as well as its premium international products: Delta One business class and Premium Select (premium economy).
"We want to make sure customers understand what we're putting in the market and that they'll find value in it," Hauenstein said.
Delta earns $2.1 billion in Q2
On Thursday, Delta reported second-quarter net income of $2.1 billion and issued a full-year forecast that buoyed investors.
Demand, which weakened sharply during the winter months as Trump administration policies roiled consumer confidence, has stabilized, Delta said. And scheduled industry capacity for September is down 1% year over year after having been up 3% in April, which has better balanced supply with demand, said Hauenstein.
Delta is forecasting an operating margin of 9% to 11% in the third quarter on revenue that will increase from flat to 4% compared to last year. For the full year, Delta expects earnings per share of $5.25 to $6.25.
For the second quarter, Delta posted operating revenue of $16.6 billion, down $10 million from last year. Operating expenses were $14.5 billion, down $165 million from a year earlier due to lower fuel costs.