Originally Posted by
EWR764
In fact, now that I think of it, perhaps pre-merger United's biggest sin (with the benefit of a ton of hindsight) was ceding Denver, where it had a 76% market share in 1998, and in excess of 60% as recently as 2006. Most recent numbers have United at about a 42% share, with roughly the same absolute number of passengers as 1997. Meanwhile, for the full year 2017, the airport is approaching double the number of passengers it handled in its first full year of operation.
Had United kept pace in Denver, or not pulled down as much capacity as it ultimately did, UA would have another of exactly the type of fortress domestic connecting complex that has delivered outsize benefits to AA/DL, with arguably unrivaled efficiency.
I haven't, that's why I was wondering. I don't think there are any such reports. The likelihood is that Delta is losing money on SEA operations directly. Ultimately, the rest of your point (contribution) is well-taken, it's just extremely difficult to quantify without proprietary information as an outsider.
There are analysts that have written on this and claimed DL was making money, but I've not seen a direct quote from DL on this. Anderson repeatedly said they were exceeding their goals, but did not claim a profit. I don't recall a different response since he left. Delta is actually very careful about avoiding answering questions on the profitability of individual hubs IMHE, the one aside about JFK aside.
I tend to agree on DEN, but United was really in a hole. The first tech bubble burst at the same time that they were getting hammered after the SFH. UA did not have the $$$ to focus on network synergies in the 2003-9 period, nor did they try to be a nationwide carrier. It was just a very different market than today.
But I also - as someone who used to connect in DEN a lot c2006-2013 - recall the capacity being cut yet further in 2012.