By Rajesh Kumar Singh
CHICAGO, Dec 17 (Reuters) - Delta Air Lines said on Wednesday that Glen Hauenstein, its president and the architect of its premium-focused strategy, will retire in February.
Hauenstein, 64, joined the Atlanta-based airline in 2005 and has served as president since 2016. During his tenure, he led a sweeping transformation that repositioned Delta from a mass-market carrier to a premium brand.
He championed high-end products and persuaded travelers to pay for seats, such as first
class, that were once given away as free upgrades.
The strategy has delivered strong results: premium products accounted for 43% of Delta's passenger revenue in the latest quarter, up eight percentage points from pre-pandemic levels.
Executives now expect revenue from premium cabins to surpass main cabin ticket sales as early as 2026.
"Glen's vision and strategic mindset have been essential in transforming Delta into the leading global airline we are today," Chief Executive Ed Bastian said.
Under Hauenstein's leadership, Delta generated far more revenue per seat than its rivals, more than twice the industry average, according to Jefferies analysts.
The company's success has forced rivals United and American Airlines to follow suit, investing heavily in upgraded cabins and luxury ground experiences to attract high-paying travelers.
Hauenstein also drove the shift in loyalty programs to reward total spending rather than miles flown, a model now standard among major U.S. carriers.
"It's hard to know whether you're lucky or good, but I would say he was good before he was lucky," said Robert Mann, a former airline executive turned consultant.
Hauenstein was instrumental in expanding Delta's global footprint, building a network that spans six continents and forging joint ventures with carriers such as Virgin Atlantic, Air France-KLM, and Korean Air.
He will retire on February 28 but remain with Delta through 2026 as a strategic adviser.
The airline named Joe Esposito, senior vice president of network planning, as executive vice president and chief commercial officer. Esposito will oversee revenue management, sales, and the SkyMiles loyalty program.
(Reporting by Rajesh Kumar Singh; Editing by Chris Reese)
