Delta Air Lines President Glen Hauenstein to Retire in February

Delta Airlines Chairman Glen Hauenstein, who propelled the carrier to become the industry’s profit leader and championed the airline’s lucrative embrace of travelers willing to spend a little more for a more luxurious travel experience, is retiring in February.

“Glen and his team have played a central role in Delta’s premium strategy as we have evolved over two decades to become the airline of choice for travelers who want to invest in great experiences in the air and on the ground,” CEO Ed Bastian said in a memo to employees. “I couldn’t have asked for a better co-pilot to help Delta become the most successful airline in the world.”

Delta is promoting Joe Esposito, who has been with Delta for 35 years – most recently as senior vice president of network planning, pricing and revenue management – ​​to executive vice president and chief commercial officer.

Hauenstein, 64, has worked at Delta since 2005 and was named to his current role in 2016. He previously served as the airline’s executive vice president and chief revenue officer. He will become strategic advisor until the end of 2026.

During his tenure, Hauenstein grew Delta’s international network and helped the airline identify new ways to earn more per seat, in part by getting customers to pay for first-class seats that it was offering for free. In October, Delta said revenue from premium travel would surpass main cabin sales next year.

Sometimes Delta’s strategies have proven effective with too many customers. Overcrowding in its Sky Club airport lounges has prompted the airline to raise the entry bar to get rid of unsightly queues.

“Glen has played an important role in the transformation of Delta since his [2005] filing for bankruptcy,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel industry consulting firm. Hauenstein pushed for the now-industry standard to evolve the loyalty program to reward spending and not just miles flown and encouraged Delta to invest in better pricing and revenue software, he said.

Harteveldt added that Delta also needs to determine when it will upgrade its cabin interiors and make sure it doesn’t alienate customers, some of whom have complained about high redemption rates for frequent flyer miles.

While Delta continues to generate more profit than other carriers, competitors like United Airlines have invested heavily in renovated cabins, free fast Wi-Fi and new planes. American airlineswhich was late to the luxury travel boom, is also investing in better products on board and at the airport.

In addition to focusing on affluent consumers, Hauenstein had also noticed a trend of wealthy baby boomers willing to travel.

“Being a baby boomer, I can say this without fear of retaliation. There is little time left to go to Europe or almost to see Australia or Japan,” he said during a conference call in April. “So there’s this wealth effect where this cohort of retirees is wealthier than any other cohort, even with the most recent count, and they want to go and do things.”