Delta Airlines holds the second-largest position in America, with around 17.3% market share, providing excellent services and catering to millions. After reading this, you will learn more about the company in this delta airlines swot analysis. Let’s get into it!
Delta Airlines: Company Overview
| Company | Delta Air Lines |
| Industry | Airline |
| Founded | 2 March, 1925 |
| Founder | C.E. Woolman |
| CEO | Ed Bastian |
| Headquarter | Atlanta, Georgia, U.S. |
| No. of Employees | 83,900+ |
| Annual Revenue | $29.90 billion (FY 2021) |
| Website | delta.com |
With a hundred years of glory, experience, and a loyal customer base, Delta Air Lines, founded in 1924, has become one of the major american airlines. With over 95,000 employees, Delta operates an extensive global network and serves numerous domestic and international destinations across six continents.
In 2022, the company reported a total revenue of $50.582B and a net income of $1.318B, an outstanding 370.71% growth from the previous year.
Product & Services of Delta Airlines
Airline | Baggage Services | In-flight Services
Delta Airlines Competitors
American Airlines | United Airlines | Southwest Airlines | JetBlue | Virgin America | US Airways Group | AirTran Holdings | Continental Airlines
Did You Know?
Delta Airlines has been the official airline and a sponsor of the United States Olympic Committee since 2005, providing transportation for athletes and staff.
Strengths – Delta Airlines SWOT Analysis
Huge Fleet: With 943 aircraft gracing the skies, Delta’s fleet is a majestic force to behold. The airline offers a range of models from Airbus, Boeing, and McDonnell Douglas, making it possible for Delta to serve a variety of destinations and passenger capacities. Because of these, whether you’re traveling for business or pleasure, Delta has an aircraft to suit your needs.
High Brand Value: By consistently delivering excellent service and creating a memorable experience for their passengers, Delta Airlines has built a high brand value. As we can see, Delta holds the 24th position in “World’s Top 100 Airlines 2022” by the 2022 World Airline Awards, and they have also been recognized as one of the “World’s Most Admired Companies” by Fortune magazine.
Excellent Customer Service: Regarding exceptional customer service, Delta Airlines soars above the rest. With a steadfast commitment to customer satisfaction, they have built a loyal following that remains unmatched in the industry. As a result, Delta has ranked as the second-best US airline for customer satisfaction in the aviation industry.
Strong Financial Position: Through careful management of costs, and strategic investments in technology and infrastructure, the airline has proven its resilience and profitability with solid financial foundations. Delta reported record revenues of $50.582B, a 69.18% jump from the previous year, and a net income of $1.318B in 2022, with an impressive return on assets of 1.8%.
Weaknesses – Delta Airlines SWOT Analysis
Uneven Revenue Market: It’s usual for many companies to have tons of offerings and only a few successful products or cash cows. For Delta Airlines, only a few markets, like America, and particularly a few routes that bring most of the revenue, such as New York to Los Angeles, generate around 4% of revenue alone.
High Turnover Rate: The company has been experiencing a high attrition rate, and employee departures have soared. Their employee turnover rate reached around 30%, surpassing the industry average in 2022. That way, Delta is not only losing money because of letting go of experienced employees but also of hiring new ones.
Technical Issues: Like any other airline, it has experienced technical issues with its planes. In the last few years, Delta has faced various technical challenges, such as a flight being forced to make an emergency landing due to an engine issue. Besides, there have been hundreds of issues regarding avionics, engines, and landing gear, making it difficult for the company to maintain operations smoothly.
Opportunities – Delta Airlines SWOT Analysis
Better Positioning: One way to minimize the risk of depending on a few markets is expanding to different markets and better positioning. As a part of the plan, Delta has been spreading its wings globally by expanding routes focusing on specific positions. With the increasing demand for travel between the United States and Asia, Delta has strategically added more flights and destinations.
Target Market Expansion: With a keen eye for growth opportunities, Delta Airlines is soaring to new heights as it expands its target market. Delta caters to all, from business executives seeking seamless connectivity to adventure enthusiasts yearning for exotic destinations. And as more and more routes and markets are joining, the target markets are expanding too.
Service Expansion: One of the company’s key strengths is that they have a world-class maintenance service, and that’s how they keep its old planes even looking newer and maintain amazing service. Delta is already expanding its services to offer maintenance solutions to other airlines to showcase its expertise and capitalize on a growing market.
Strategic Acquisitions & Partnerships: In the cutthroat competition in the aviation industry, every company must expand and make strategic moves, as Delta Airlines is doing with its strategic acquisitions and partnerships that have taken the airline industry by storm. Almost a decade ago, Delta and Northwest merged, and after that, they made several small and big partnerships that expanded their global network.
Threats – Delta Airlines SWOT Analysis
Increased Competition: Delta Airlines feels the heat as competition in the skies soars to new heights. Low-cost carriers like Southwest and JetBlue have expanded their routes. Besides, American Airlines and United Airlines have ramped up their services, vying for market share, making it difficult for Delta to expand and keep up with the competition.
Rising Cost: Due to various reasons, the entire aviation and transportation industry faces cost control challenges. As for Delta Airlines, fuel expenses have surged, with jet fuel prices reaching their highest levels in a decade. Additionally, labor costs have increased due to rising wages and benefits.
Complex Regulations and Lawsuits: Compliance is paramount, from safety standards to passenger rights, and Delta faces new issues regarding various regulations. Besides, the company was sued by a group of employees alleging that its retirement plan was mismanaged, and recently it had to pay $10.5M for a false claim.
Environmental Threats: The increasing demand for air travel contributes to climate change, air pollution, and noise pollution. Delta emitted over 39M metric tons of CO2 in 2022, which has become a big issue, and they are already working on that.
[Bonus Infographic] SWOT Analysis of Delta Airlines
Recommendations for Delta Airlines
No matter how much experience and history a company has, they already need to adapt to the new markets, and here are some recommendations for Delta Airlines.
- Delta Airlines should consider expanding its route network to untapped markets with high domestic and international demand potential.
- Analyze customer preferences and develop targeted marketing strategies to attract specific demographics such as millennial travelers or business professionals.
- Ensure efficient aircraft maintenance to minimize delays and cancellations, enhancing customer satisfaction and providing service to other airlines.
- Develop codeshare agreements, loyalty program collaborations, and joint marketing campaigns to extend the reach and enhance customer loyalty.
Frequently Asked Questions (FAQs)
How Many Planes Does Delta Use?
Delta uses 943 planes, one of the largest airline fleets worldwide.
How Many Countries Does Delta Fly to?
Delta flies to over 60 countries worldwide.
Final Words on Delta Airlines SWOT Analysis
Delta Airlines, a leading global carrier, continues to navigate challenges and seize opportunities in the dynamic aviation industry. With a commitment to customer satisfaction, and strategic growth, Delta strives to provide exceptional service, expand its market presence, forge partnerships, and address operational issues for a successful future.
References
- Wikipedia contributors. (n.d.). Delta Airlines. Wikipedia.
- Yamanouchi, K. (2022, April 26). Delta ranks second in American Customer Satisfaction Index. The Atlanta Journal Constitution.
- Airoldi, D. M. (n.d.). BTN’s 2022 Airline Survey & Report. BTN.
- Griff, Z. (2023, March 17). Delta boosts 16 routes in holiday-focused Latin America expansion. The Points Guy.
- Guillot, R. (2019, October 31). Skywise: a look at the new digital alliance between Airbus and Delta for cross-fleet predictive maintenance solutions. Le Journal De L’Aviation.
