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Delta Airlines empty plane interior
(Michael A. McCoy/Getty Images)

Delta, the K-shaped airline

Delta’s premium ticket sales grew more than 7% in 2025. Its main cabin ticket sales fell 5%.

For the first time, Delta is making more money from its first class and Comfort+ passengers than its main cabin passengers.

In the fourth quarter, Delta’s premium ticket revenue grew 9% to $5.7 billion while its main cabin sales fell 7% to $5.62 billion. That happened a few quarters earlier than even Delta expected — back in October, CEO Ed Bastian said it could occur a few times in fiscal 2026.

While notable, the outcome has been inevitable for a while. Premium ticket growth has outpaced main growth every quarter for at least three years at Delta, as travel has become a core pillar of America’s “K-shaped economy” in which affluent consumers do well and those on the lower end of the income spectrum cut back.

“If you look at the economy, if you look you look at strength of the market and at how... high-end consumers are feeling about their opportunities, they're quite bullish,” said Bastian on Tuesday’s earnings call.

Delta is leaning into the K, relying on wealthier travelers to bolster its profits — and the margin spreads have never been greater. According to Delta president Glen Hauenstein on Tuesday’s earnings call, 2026 will see all of the airline’s new seat growth (it plans to boost capacity 3%) concentrated in premium cabins.

“The bottom end of the industry and the commodity side of the business has been struggling greatly,” Hauenstein said. “That sector has been unable to grow here for the last several years.”

Helping premium grow comfortably as the main cabin experiences turbulence is Delta’s co-branded American Express credit card, which brought in $8.4 billion in 2025. Cardholders receive points on purchases and can board their flights earlier — and benefits increase with higher, i.e. premium, spending.

Those cardholders, Bastian says, are “among [Delta’s] most valuable and satisfied customers, traveling more often and spending more on Delta.”

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Paramount sues Warner Bros. for more info on its deal with Netflix, says it plans to nominate new directors

It’s a fresh week and that means a fresh bit of escalation in the ongoing Warner Bros. Discovery merger drama.

At an upcoming meeting, Paramount Skydance plans to “nominate a slate of [WBD] directors who, in accordance with their fiduciary duties, will... enter into a transaction with Paramount,” CEO David Ellison wrote in a letter to WBD shareholders disclosed on Monday.

Ellison also said that Paramount sued WBD in Delaware court in an effort to force the board to disclose “basic information” that will allow shareholders to make an informed decision between Paramount’s offer and one from Netflix. WBD shares dipped about 2% on Monday morning.

The latest update follows Paramount’s move last week to reaffirm — but not raise — its $30-per-share offer for WBD. Some saw that decision as Paramount effectively throwing in the towel on its merger hopes, given that the same deal has been rejected twice by the WBD board and winning over shareholders directly is a difficult process. Monday’s disclosure appears to signal that whether it loses or not, Paramount isn’t going to make Netflix’s acquisition easy.

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