Delta adding seats to boosts margins

Atlanta-based Delta Air Lines continues to replace many of its smaller planes with larger ones and add seats to aircraft, which it says boosts its profit margins.

Delta has been retiring 50-seat regional jets and replacing them with larger, more efficient planes. It has also added more seats on planes by using slimline seats and re-engineered galleys that had been used for food service.

“We can put significantly more seats on the airplane without jeopardizing seat comfort or legroom,” said Delta chief financial officer Paul Jacobson during a presentation to investors this week. Larger planes also allow more first class seats, which generate more revenue. Overall, Delta has been able to reduce the number of airplanes in its domestic fleet by 15 percent compared with 2009 while keeping its seat capacity flat, according to Delta president Ed Bastian during an investor presentation Tuesday.

Separately, Bastian also said the strong dollar has hurt Delta’s international revenues. Delta has also been working to balance its fuel hedge portfolio after the decline in fuel costs led to huge losses on its advance fuel contracts.

About the Author

10 hybrid and EV models, 3K jobs part of Hyundai’s next phase in Georgia

The Korean automaker detailed a $2.7 billion expansion to its Georgia electric vehicle factory near Savannah and plans to grow the number of models to be built there.

Hyundai’s Georgia electric vehicle plant: What you need to know

Here’s what you need to know about the Hyundai facility in Georgia near Savannah, where production of electric vehicles will begin later this year.

Edible Brands expands THC marketplace even as lawmakers challenge the industry

In March, Edible Brands expanded beyond selling its iconic Edible Arrangements and other sweet treats into hemp products with federally legal amounts of THC.

The Latest