Delta Air Lines President Glenn Hoenstine will retire in February

Delta Airlines President Glenn Hoenstine, who pushed the carrier to become the industry’s top profit leader and championed the airline’s profitable embrace of travelers willing to spend a little extra for a more luxurious travel experience, will retire in February.

“Glenn and his team have played a pivotal 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,” Delta CEO Ed Bastian said in a memo to employees. “I could not have asked for a better co-pilot to help lead Delta to become the best-performing 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.

Hoenstine, 64, has been with Delta since 2005 and was appointed to his current position in 2016. He was previously executive vice president and chief revenue officer at the airline. He will become a strategic advisor until the end of 2026.

During his tenure, Hoenstine grew Delta’s international network and helped the airline identify new ways to earn more per seat, in part by successfully convincing customers to pay for first-class seats that used to be offered for free. In October, Delta said revenues from premium travel would exceed sales from main cabin next year.

Sometimes, Delta strategies have proven successful with a very large number of clients. Overcrowding in Sky Club airport lounges prompted the airline to raise the entry barrier to get rid of unsightly lines.

“Glenn has played an important role in Delta’s transformation since its founding [2005] “Declaring bankruptcy,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel industry consulting firm. Hoenstine pushed for the current industry standard to move the loyalty program to reward spending and not just miles flown, and he encouraged Delta to invest in better pricing and revenue programs.

Delta also must figure out when it will update cabin interiors and make sure it doesn’t alienate customers, some of whom have complained about high redemption rates for frequent flyer miles, Harteveldt added.

While Delta continues to make more money than other carriers, competitors love it United Airlines We have invested heavily in refurbished cabins, free fast WiFi and new aircraft. American Airlineswhich was late to the luxury travel boom, is also investing in better on-board and airport products.

Besides a penchant for affluent consumers, Hoenstine also noticed a trend in affluent baby boomers who were willing to travel.

“As a baby boomer, I can say this without fear of retaliation,” he said on an earnings call in April. “There’s not a lot of time to go to Europe or nearly as much time to go see Australia or Japan.” “And so we have a wealth effect where this group of retirees is wealthier than any other group even with the latest rundown, and they want to do things.”