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Delta Air Lines Sees Premium Profit: On their third quarter earnings call, Delta executives confirmed what I had been hearing anecdotally for a while: Customers are buying premium seats at an increased rate. With a hot economy, more business and high-end leisure travelers are deciding they can afford business class, domestic first class, premium economy, and extra-legroom economy class seats. The business is so strong Delta executives said they would consider installing more premium seats.
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To help fund the site, the founders created special edition breakfast cereals, with presidential candidates Barack Obama and John McCain as the inspiration for "Obama O's" and "Cap'n McCains". In two months, 800 boxes of cereal were sold at $40 each, which generated more than $30,000 for the company's incubation. It also got the company noticed by computer programmer Paul Graham, who invited the founders to the January 2009 winter training session of his startup incubator, Y Combinator, which provided them with training and $20,000 in funding in exchange for a small interest in the company. With the website already built, they used the $20,000 Y-Combinator investment to fly to New York City to meet users and promote the site. They returned to San Francisco with a profitable business model to present to West Coast investors. By March 2009, the site had 10,000 users and 2,500 listings.