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.

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.