Delta continues to make moves that could place it in an uncomfortable level of isolation

Premium Analysis

Although Delta Air Lines is facing the same revenue pressure as other US carriers, the company is one of the most successful airlines worldwide by any other number of measures; including cash flow, return on invested capital and shareholder rewards. Delta started the product segmentation movement in the US, allowing the airline to create competitive gaps with its rivals, which are in the early stages of creating fare families.

But Delta also makes moves that trigger a certain amount of head-scratching, reflected in its recent decision to pull a long-term sponsorship of a local Atlanta theatre after Qatar Airways held a private event celebrating its recent launch of service to the city. The decision generated negative PR for Delta and underpinned the general perception of its protectionist philosophy – running counter to the globalisation necessary for the airline industry to thrive.

Not surprisingly, Delta’s new CEO appears to be adopting a status quo stance on some of the more controversial issues that the company has adopted, including the Gulf airline subsidy debate and the privatisation of the US ATC system. The perception is that Delta increasingly presents a go-it-alone attitude, which could hurt its brand and image over the long term, as well as its prospects for international expansion.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,280 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.