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Delta, boosted by premium ticket sales, says customers who go Comfort+ don’t go back

Delta’s third-quarter revenue beat Wall Street estimates on Thursday, led by 9% growth in its premium ticket category.

Max Knoblauch

The lines for boarding zones 1 through 3 are about to get even longer, if Delta Air Lines is to be believed.

In its earnings call Thursday following the release of its better-than-expected third-quarter results, Delta executives highlighted the carrier’s strength in premium ticket sales. The category, which includes first class and business seats, grew 9% in the third quarter, compared to a 4% drop in economy ticket sales.

Delta sang the category’s praises, with CEO Ed Bastian saying that he thinks premium could overtake main cabin sales in a few quarters next year. The company has previously said it expects premium to eclipse economy by 2027.

According to Delta President Glen Hauenstein, premium has been boosted by repeat customers.

“I’ve equated it to: the car that you drive today, is it better than the first car you had? The answer is probably yes, and you don’t see many people going back to cars that are worse,” Hauenstein said. “I think once people get used to traveling in a certain product, whether it’s Comfort+, Delta Premium Select, or Delta One, they tend not to go back. Their retention rates are in the mid-80s.”

In the past decade, premium products like Comfort+ — which, according to Nerdwallet, offers about three extra inches of legroom — have grown from loss leaders to become the carrier’s highest-margin products, Hauenstein said.

Delta shares rose as much as 9% Thursday from Wednesday’s close, though gains pared down to about 4% by the late afternoon.

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Warner Bros. Discovery climbs amid reports it’s rejected takeover offers around $24 per share

Shares of Warner Bros. Discovery are trading up on Wednesday as a bidding war for the HBO and CNN parent company heats up.

According to CNBC, WBD has now rejected three Paramount Skydance offers. The latest was said to be for close to $24 per share (about a 15% premium from the stock’s level as of Wednesday morning and nearly double where it was trading before reports of a potential takeover surfaced in September) with 80% in cash. Yesterday afternoon, Reuters reported that WBD’s board rejected the $24 offer on Tuesday.

WBD, which said on Tuesday it was open to a sale and that there are multiple interested parties, climbed on the latest update. The stock was up more than 4% after the market opened before its gains narrowed.

According to reports, Paramount remains the most interested potential buyer, but Comcast, Amazon, and Netflix are also circling.

On Netflix’s earnings call after the bell Tuesday, the streamer’s co-CEO, Ted Sarandos, reiterated that the company has “no interest in owning legacy media networks.” Still, industry experts have speculated that a sale of WBD’s streaming and film studios business — which it previously intended to spin off — could be on the table, leaving Netflix in the hunt.

WBD, which said on Tuesday it was open to a sale and that there are multiple interested parties, climbed on the latest update. The stock was up more than 4% after the market opened before its gains narrowed.

According to reports, Paramount remains the most interested potential buyer, but Comcast, Amazon, and Netflix are also circling.

On Netflix’s earnings call after the bell Tuesday, the streamer’s co-CEO, Ted Sarandos, reiterated that the company has “no interest in owning legacy media networks.” Still, industry experts have speculated that a sale of WBD’s streaming and film studios business — which it previously intended to spin off — could be on the table, leaving Netflix in the hunt.

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Millie Giles

Mattel stock sinks after the Barbie maker posts disappointing Q3 results

Shares of toymaker Mattel fell by more than 6% in early trading this morning, after the company posted third-quarter results on Tuesday evening that missed analysts’ estimates.

The company, which owns Barbie and Hot Wheels, reported net sales of $1.74 billion — a 6% slump year over year, and short of the $1.83 billion Wall Street expected — with net profit also slipping by 25% to $278 million.

Plant Based Meat Burger on grill

Beyond Meat is soaring again — can the fake meat company turn the meme stock spotlight into a real future?

The faux meat maker’s stock is up more than 1,200% since October 16, but its core business is still a cash incinerator.

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