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Delta Sees Performance and Increased Fares as Keys to Recovery

With data backing claims of a better passenger experience, Delta executives say now is the time to capitalize on growth.
Armed with numerous awards, strong on-time performance data and the fewest cancellations, Delta Air Lines says they are prepared to maximize on the aviation sector recovery.

 

The Atlanta-based airline announced their plan to get back to profitability in their investor day presentation, which includes guiding flyers to higher priced airfare in 2022 and beyond.

 

Simplifying Fleet, Offering More Premium Seats Key to Increasing Profit Margin

Despite the Omicron variant of COVID-19 threatening shutdowns and grounding airplanes again, leaders at Delta say their commitment to the passenger experience differentiates them from their competition. According to data Delta provided from the U.S. Department of Transportation, the carrier has the lowest cancellation percentage among the four major airlines, as well as the highest on-time arrival rate.

 

Slide courtesy: Delta Air Lines

 

Anticipating a pent-up demand for travel in 2022 and beyond, executives say optimizing their fleet and focusing on a premium experience will give them the competitive edge. During the COVID-19 pandemic, Delta retired 200 aircraft and permanently grounded two fleet families, speeding up their fleet simplification plan by four years.

Their three-year plan calls for selling more of their premium product, especially on domestic routes. By reducing the number of aircraft families to eight and increasing premium seat inventory by over 30 percent, the airline wants to sell 10% more premium cabin seats, with a target paid domestic first class load factor in the “high 60%” range.

 

Slide courtesy: Delta Air Lines

 

The backbone of selling higher priced seats is in driving loyalty for the brand. Their loyalty revenue plan calls for extending loyalty benefits to other brands (such as Lyft and Airbnb), partnering with American Express to add more co-branded cardholders, and becoming “the most powerful co-branded card” in the marketplace.

 

Slide courtesy: Delta Air Lines

 

Delta’s partnerships aren’t limited to financial institutions and complementary travel brands. Through their investments and partnerships in the SkyTeam alliance, the carrier is hopeful to build strong international networks to facilitate consumer demand, with a focus on Asia, Europe and South America.

 

Slide courtesy: Delta Air Lines

Delta Becomes Second Airline to Outline Recovery Plans

With their investor presentation, Delta is the second carrier to outline their long-term recovery plans. Southwest Airlines was the first to provide details about their future plans, including adding a fourth product level to their lineup.

4 Comments
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troyintn January 6, 2022

I hope it is true, but they have a lot of issues to clean up.  I have been hearing for over a year that they will fix the long wait times for the call center.  Along with a meltdown that lasted over a week.

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Aloha1 December 30, 2021

No way is DL #1 in transpac. Bastien has cut back service to Japan severely and given up the great hub at Narita he inherited from NWA. And as for Skyteam, at best they are #3 on a global scale.

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Dr.Ells December 22, 2021

Besides UA, delta, and American, how is there a 4th major airline?

Hawaiian or Alaska?  Certainly not one of the “—” carriers.