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Delta Tweaks Its Revenue Management Approach For A New Normal

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Delta Tweaks Its Revenue Management Approach For A New Normal

Summer demand got the attention in the mainstream press. But Delta's earnings call was heavy on revenue management strategy. We love that.

Brian Sumers
Apr 14, 2023
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Dear readers,

You called it. In December, Delta Air Lines president Glen Hauenstein teased plans to combat an increasing problem — passengers who book flights but do not show up. Many of you told me airlines have only one solution: overbooking.

On Thursday, during Delta's first quarter earnings call, executives outlined several changes to the airline's revenue management strategy to accommodate three post-Covid phenomena — a higher number of late cancellations, a new booking curve, and a changing (and shrinking) business travel market. It’s not clear these will last forever, but Hauenstein said the airline wants to "harness the demand set better," and make real-time adjustments for what has become the new normal.

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