Delta Air Lines President Glenn Hauenstein to retire in February

delta airlines President Glenn Hauenstein, who made the company the industry’s profit leader and championed the company’s embrace of travelers willing to spend a little more for a more luxurious travel experience, will step down in February.

“Glenn and his team have been central to Delta’s premium strategy for more than 20 years as we evolved to become the airline of choice for travelers looking 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 lead Delta Air Lines into one of the world’s best-performing airlines.”

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

Mr. Hauenstein, 64, has been with Delta Air Lines since 2005 and was appointed to his current role in 2016. He previously served as the company’s executive vice president and chief revenue officer. He will serve as strategic advisor until the end of 2026.

During his tenure, Mr. Hauenstein expanded Delta’s international network and helped the airline identify new ways to increase revenue per seat, including successfully forcing customers to pay for first-class seats that were previously offered for free. Delta Air Lines announced in October that premium travel sales will exceed main cabin sales next year.

Delta’s strategy sometimes succeeded by having too many customers. Sky Club’s airport lounges have become so crowded that the company has raised the entry bar to eliminate unsightly lines.

“Glenn has played a critical role in the transformation of Delta Air Lines. [2005] said Henry Harteveldt, founder of travel industry consulting firm Atmosphere Research Group. Hauenstein said he pushed for the current industry standard of moving loyalty programs to match spend, not just miles flown, and encouraged Delta Air Lines to invest in better pricing and revenue software.

Harteveldt added that Delta Air Lines needs to figure out when to upgrade its cabin interiors to make sure it doesn’t alienate customers, some of whom are dissatisfied with the high redemption rates for frequent flyer miles.

Delta Air Lines continues to generate more profits than other airlines, but its competitors united airlines has invested heavily in renovated rooms, free high-speed Wi-Fi, and new planes. american airlinesThe company, which was a latecomer to the luxury travel boom, is also investing in better products on planes and at airports.

In addition to leaning toward affluent consumers, Hauenstein also noted the trend of affluent baby boomers who like to travel.

“I’m a baby boomer, so I can say this without fear of retribution. I have limited time to go to Europe, and I have almost no time to go see Australia or Japan,” he said at an April earnings conference. “And this group of retirees is better off than any other group, even in the most up-to-date conditions, creating a wealth effect where they want to do things.”