Delta remains bullish on foreign investments strengthening its bottom line but cost creep is a worry

Delta Air Lines in 2013 aims to narrow competitive network gaps with its US legacy rivals through the maturation of its cross-border investments in Aeromexico and Gol while laying the groundwork to strengthen its dominance in the strategic New York market. This after unveiling plans in Dec-2012 to bolster its position at London Heathrow through an equity stake in Virgin Atlantic.

As its major competitor United embarks on 2013 still in the throes of merger integration, and with a strong likelihood that American and US Airways will begin the complex process of combining their respective networks this year, Delta will continue to enjoy the revenue benefits of its long-ago completed merger with Northwest.

But Delta also has its own set of challenges to overcome including a spillover from 2012 of unit cost creep and proving to sceptics that its recently purchased oil refinery will live up to expectations. At the same time Delta's stock price continues to underperform its peers, which could mean the airline still has to convince investors that its three-year profit streak has staying power.