ATLANTA — Delta Air Lines' premium cabin revenue is approaching a historic milestone, set to surpass main cabin revenue for the first time in the airline’s 101-year history. In its most recent quarter, premium revenue grew 14% year-over-year, nearly matching main cabin revenue, which increased by just 1%.

The shift reflects Delta’s broader strategy to diversify income sources and elevate its service offerings. Premium cabins now generate 20% more revenue per seat than those of U.S. competitors. The airline is testing a domestic aircraft configuration with 44 first class seats—nearly double the industry average—and expanding its Delta One lounges, which feature fine dining, wellness services, and valet offerings.

Delta is also investing in infrastructure to support this premium focus, with lounge construction or renovations underway at hubs in Atlanta, Boston, Seattle, and Salt Lake City. Opening a lounge in Las Vegas, currently the largest U.S. airport without one, is described by executives as a top priority.

Concurrently, Delta is expanding beyond traditional ticket sales. Diversified revenue streams accounted for 57% of total revenue in 2024 and rose to 62% by March 2026. These include partnerships with brands like Uber, Starbucks, and Paramount; growth in Delta Vacations; and engine maintenance services for rival airlines—a segment projected to hit $1 billion in revenue by 2026.

Chief Commercial Officer Joe Esposito, who joined Delta 30 years ago and assumed his current role in January, outlined the airline’s retail-oriented vision. “The next innovation for us is how we pull all of our products together as a best-in-class retailer,” he told Fortune. He added that the airline aims to “bring people into the ecosystem.” Esposito also said the reduction in food service on flights under 350 miles was driven by time constraints for crew, not cost savings.

Delta has used resulting efficiencies to enhance beverage service on mid-length routes and is upgrading meal offerings across its network. The airline also selected Amazon over Starlink for in-flight connectivity due to Amazon’s retailing capabilities. CEO Ed Bastian has referred to the overall approach as “de-commodization” of air travel.