Discounted Cash Flow Financial Model

Delta Air Lines, Inc. (DAL): Business Model Canvas

Related Blogs

  • How it Works & Makes Money
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Mission, Vision, & Values
  • BCG Matrix Analysis
  • Marketing Mix Analysis
  • PESTEL Analysis

Key Partnerships

Key activities, key resources, value propositions, customer relationships, customer segments, cost structure, revenue streams, introduction.

Delta Air Lines, Inc. (DAL) is a prominent player in the airline transportation industry that offers top-notch passenger travel, air cargo, and aircraft maintenance services. With advancements in technology, efficient operations, and exceptional customer service, Delta Air Lines, Inc. (DAL) has consistently been a market leader within the industry. According to a report by Statista, global revenue in the airline industry was valued at $838 billion in 2019, and it is expected to grow to $971 billion by 2025, showcasing a promising industry outlook.

  • In this detailed blog post, we will examine the business model canvas for Delta Air Lines, Inc. (DAL) and delve into the company's operations that have allowed them to achieve success amidst a highly competitive industry.
  • We will explore the value proposition provided by Delta Air Lines, Inc. (DAL), its customer segments, channels, and key activities. This analysis will provide an in-depth understanding of the company's operations, marketing strategies, and how it differentiates itself from other noteworthy competitors such as American Airlines Group and United Airlines Holdings, Inc.
  • Read on to discover how Delta Air Lines, Inc. (DAL) has managed to innovate and adapt to the dynamic airline transportation industry while maintaining its position as a market leader.

Let's dive into the business model canvas for Delta Air Lines, Inc. (DAL) and examine how the company operates.

Delta Air Lines, Inc. engages in various key activities to ensure the efficient operation of its business model. These activities include:

  • Fleet Management: Delta Air Lines, Inc. manages a fleet of more than 800 aircraft, including both narrow and wide-body planes. The company engages in activities such as aircraft maintenance, upgrades, and replacements to ensure the safety and reliability of its fleet.
  • Flight Operations: Delta Air Lines, Inc. operates more than 5,000 flights daily to over 300 destinations across the globe. Key activities within this area involve the planning and management of flight schedules, crew assignments, and fuel management.
  • Customer Service: Providing high-quality customer service is a key focus for Delta Air Lines, Inc. The company engages in various activities to ensure customers have a positive experience, including in-person and online check-in, baggage handling, and onboard amenities.
  • Marketing and Sales: To attract and retain customers, Delta Air Lines, Inc. engages in various marketing and sales activities, including advertising, promotions, and loyalty programs.
  • Revenue Management: Delta Air Lines, Inc. engages in revenue management activities to optimize its pricing and inventory strategies. This includes analyzing market conditions, forecasting demand, and adjusting pricing in real-time.
  • Logistics and Supply Chain Management: Delta Air Lines, Inc. engages in various logistics and supply chain management activities to ensure the efficient operation of its business model. This includes managing suppliers, inventory, and distribution channels.
  • Technology and Innovation: To remain competitive, Delta Air Lines, Inc. engages in various technology and innovation activities. These include the implementation of new technologies to improve operational efficiency, as well as innovative products and services that enhance the customer experience.

By engaging in these key activities, Delta Air Lines, Inc. is able to deliver a high-quality travel experience for its customers while maintaining operational efficiency and profitability.

Delta Air Lines, Inc. (DAL) requires the following key resources to operate efficiently and deliver its services:

  • Human resources: Delta employs over 80,000 people, including pilots, flight attendants, mechanics, customer service representatives, and executives. The company recruits highly skilled and qualified personnel and invests in their training and development.
  • Aircraft: Delta has a fleet of over 800 aircraft, including narrow-body and wide-body jets. They are maintained and serviced by a team of experienced mechanics to ensure they meet safety standards and provide a comfortable flying experience for customers.
  • Routes and slots: Delta's route network covers over 300 destinations in over 50 countries. The company also holds valuable slots at key airports, allowing it to efficiently manage its schedules.
  • Technology: Delta relies on technology to support its operations and enhance customer experience. This includes systems for flight planning, ticketing, reservations, and baggage handling. Delta also utilizes digital technology to engage with customers and provide self-service options.
  • Financial resources: Delta has a strong financial position, with a market capitalization of over $30 billion. The company generates significant revenue from ticket sales, cargo, and ancillary services. Delta also has access to bank loans and tax incentives.
  • Partnerships and alliances: Delta has formed partnerships and alliances with other airlines, hotels, rental car companies, and travel service providers. These relationships enable Delta to expand its services, benefits, and rewards for customers.

Delta Air Lines, Inc. (DAL) offers its customers a range of value propositions that set it apart from its competitors in the airline industry.

  • Reliability: Delta is committed to delivering reliable service to its customers, with an on-time arrival rate of over 85%. Its strong operational efficiency ensures that customers can trust Delta to get them to their destination on time.
  • Comfort: Delta's fleet of aircraft is equipped with state-of-the-art technology and high-quality amenities to make the travel experience as comfortable as possible for its customers. From extra legroom to in-flight entertainment, Delta's customers can enjoy a relaxing and enjoyable flight.
  • Accessibility: Delta serves over 325 destinations in more than 60 countries, making it easy for customers to travel to their desired destination. Delta also offers a variety of fare classes, from basic economy to first class, to accommodate different travel budgets.
  • Customer Service: Delta's customer service is highly regarded in the airline industry, with a dedicated team of professionals who are committed to providing exceptional service to its customers. From booking to baggage claim, Delta's customers can rely on its attentive and friendly customer service team to assist them every step of the way.

Overall, Delta Air Lines, Inc. (DAL) offers a comprehensive value proposition that focuses on reliability, comfort, accessibility, and customer service. Its commitment to these values has helped establish Delta as a leading airline and a top choice for travelers around the world.

Delta Air Lines, Inc., uses a variety of channels to create awareness, promote their products and reach their customers. Their channels can be grouped into four categories:

  • Direct Channels: These channels involve a direct connection between Delta Air Lines and its customers. Delta has a large web presence and uses its website to promote its products, offer discounts and facilitate bookings. The company also has a mobile app that allows customers to book flights, check-in, and access flight status updates. Delta also uses ticket counters, kiosks and self-service machines located in airports to provide services to its customers.
  • Indirect Channels: These channels involve partnerships with other companies to promote and sell Delta's products. Delta has partnerships with travel agents, online travel agencies, corporate booking systems, and other intermediaries to reach customers. Delta also cooperates with other airlines to expand its global reach.
  • Communication Channels: These channels are used to communicate with customers, employees and other stakeholders. Delta uses social media, email, SMS, and phone calls to inform customers of new products, services and promotions. The company also uses internal communication channels to keep employees informed and motivated.
  • Service Channels: These channels are used to deliver the core service of Delta. These channels include the company's fleet of aircraft, ground support equipment, and baggage handling systems. Delta also has a customer service call center to handle inquiries, complaints, and requests.

Delta Air Lines' multi-channel approach aims to provide customers with various options to interact with the company, book flights, and receive support. The company's direct channels, which include its website, mobile app, and airport services provide a seamless and convenient booking experience. Indirect channels, including partnerships with intermediaries, help Delta reach a wider audience, while communication channels allow the company to keep customers informed and engaged. Service channels, including Delta's fleet of aircraft and customer service call center provide a high level of service to customers.

Delta Air Lines, Inc. (DAL) has a complex cost structure due to the nature of the airline industry. The following are the major cost components that make up the company’s cost structure:

  • Salaries and Wages: Delta Air Lines employs a significant number of employees, including pilots, flight attendants, ground staff, maintenance personnel, and administrative staff. The salaries and wages paid to these employees represent a considerable portion of the company's operating costs.
  • Fuel: Fuel is one of the largest expenses for Delta Air Lines. The company uses a significant amount of jet fuel to power its fleet of planes, and fluctuations in fuel prices can have a significant impact on the company's bottom line.
  • Aircraft Maintenance and Repair: Delta Air Lines must ensure that its aircraft are well-maintained to ensure safety and reliability. The company needs to invest in regular maintenance checks, repair work, and replacement of parts to keep its planes in top condition.
  • Depreciation and Amortization: Delta Air Lines owns a considerable fleet of aircraft that needs to be periodically replaced or upgraded. The company needs to account for depreciation and amortization expenses related to its assets.
  • Airport Fees: Delta Air Lines pays fees to airports for landing, parking, and other services. These fees can vary depending on the airport, and they can have a significant impact on the company's operating costs.
  • Marketing and Advertising: Delta Air Lines invests heavily in marketing and advertising to promote its brand and attract customers. This includes advertising campaigns, sponsorships, and promotions.
  • Technology: Delta Air Lines invests in technology to improve its operations and enhance customer experience. This includes software applications, website development and maintenance, and hardware and software upgrades.
  • Insurance: Delta Air Lines needs to carry insurance to protect itself against various risks, including accidents, property damage, and liability claims.
  • Distribution Costs: Delta Air Lines incurs costs associated with distributing its tickets and services through various channels, including travel agents, online booking platforms, and direct sales.

Overall, Delta Air Lines, Inc. (DAL) has a highly variable cost structure that can be affected by various factors, including fuel prices, aircraft maintenance, and marketing expenses. Managing these costs is critical to the company's success in the highly competitive airline industry.

The Business Model Canvas for Delta Air Lines, Inc. (DAL) elucidates the key areas that the company needs to focus on to maintain its market leadership position effectively. By employing a range of strategies across value proposition, key partnerships, revenue streams, cost structure, and customer segments, Delta Air Lines has successfully competed in the airline industry.

  • Value Proposition: Delta Air Lines' value proposition is based on providing high-quality services to customers. This includes ensuring a comfortable travel experience, incorporating advanced technology and equipment, and reaching destinations on time.
  • Key Partnerships: The company has established key partnerships with various upstream suppliers, service providers, and other airlines to ensure continuity in operations and cost savings.
  • Revenue Streams: Delta Air Lines generates revenue by charging competitive prices for the services offered, which includes airline tickets, baggage fees, and other ancillary services.
  • Cost Structure: The airline company efficiently manages its costs by implementing operational strategies such as fleet optimization, fuel hedging, and workforce optimization while continuously seeking to improve efficiency.
  • Customer Segments: Delta Air Lines has identified customer segments that need the most value-addition, such as business travelers, frequent flyers, and tourists that require a comfortable and reliable mode of transportation.

Overall, Delta Air Lines has been able to remain profitable and well-positioned in the airline industry by effectively managing its cost structure, diversifying its revenue streams, and ensuring customer satisfaction. By constantly innovating, improving its services and operational strategies, and forming strategic partnerships, Delta Air Lines is well-positioned to take advantage of new market opportunities and maintain its market leadership position in the future.

DCF model

5-Year Financial Model

40+ Charts & Metrics

DCF & Multiple Valuation

Free Email Support

  • CANVAS (5564)
  • Choosing a selection results in a full page refresh.
  • Search Search Please fill out this field.
  • Overview of Porter's Five Forces

An Overview of Delta Air Lines

Industry competition, bargaining power of buyers, the threat of new entrants, bargaining power of suppliers, threat of substitutes.

  • Fundamental Analysis

Analyzing Porter's 5 Forces Model on Delta Air Lines

Discover which forces pose the biggest threat to Delta

delta airlines business model canvas

As one of the largest airline carriers in the world, Delta Air Lines faces competitive challenges and threats that can impact its performance and profitability. Investors interested in analyzing the company as a potential investment can conduct a fundamental analysis to help them gain a clear picture of Delta's financial position and its position within the airline industry. This information leads to better investing decisions since share price appreciation tends to follow sound fundamentals. The fundamental analysis starts with examining a company's financial documents, such as its financial statements , annual and quarterly reports, and stock performance.

However, the shrewdest investors will go beyond looking at Delta's financial position and will study the potential effects of external forces on the company's health. One of the most effective tools for this is Porter's Five Forces.

Overview of Porter's Five Forces Method

Porter's Five Forces is an analytical framework developed in 1979 by Harvard Business School professor, Michael E. Porter. Porter's goal was to develop a thorough system for evaluating a company's position within its industry and to consider the types of horizontal and vertical threats the company might face in the future.

Horizontal Threats and Vertical Threats

A horizontal threat is a competitive threat, such as customers switching to a substitute product or service, or a new company entering the marketplace and appropriating market share. A vertical threat is a threat along the supply chain , such as buyers or suppliers gaining bargaining power, that can put a company at a competitive disadvantage.

The Five Forces model evaluates three potential horizontal threats and two vertical threats. Industry competition, the threat of new entrants, and the threat of substitutes represent the horizontal threats. The vertical threats come from the increased bargaining power of suppliers and the increased bargaining power of buyers. Using the Five Forces framework, investors can determine the most viable threats to a company. With this information, they can evaluate whether the company has the resources and protocol in place to respond to likely challenges.

Key Takeaways

  • Porter's Five Forces is an analytical framework that helps investors evaluate a company based on its position within an industry and the kinds of horizontal and vertical threats it might face in the future.
  • A horizontal threat is a competitive threat, such as a new company entering the marketplace and gaining market share.
  • A vertical threat puts a company at a competitive disadvantage, such as buyers or suppliers gaining bargaining power.
  • In the airline industry, buyers have tremendous bargaining power because they can quickly and easily switch from one carrier to another using third-party trip-booking websites and apps.

Delta Air Lines, Inc. ( DAL ) is the oldest airline still in operation in the United States. The company was founded in 1928 and has its headquarters in Atlanta, Georgia. From May 2020 to April 2021, Delta ranked third in domestic market share for U.S. airlines at 14.3%.  Delta's sheer size and status as a longtime leader in the airline industry have helped ensure its continued success. As of July 2021, the company's market capitalization was around $26.6 billion.

The level of competition in the airline industry is high. The big airlines essentially fly to the same places out of the same airports for about the same prices. The amenities, or lack of amenities, they offer are similar, and the seats in coach are just as cramped no matter which airline you choose. Delta's traditional rivals include United and American, but the company also faces major competition from the growing popularity of value carriers, most notably Southwest, but also JetBlue and Spirit.

The number of passengers Delta Air Lines carried in 2020.

Because the air travel experience for customers is remarkably similar no matter which airline they take, airlines are constantly threatened by the prospect of losing passengers to competitors. Delta is no exception. If a customer is planning to book a flight from Houston to Phoenix on Delta but a third-party price aggregator, such as Priceline , reveals a better deal from United, the customer can make the switch with a simple click of the mouse. Delta manages these competitive threats with extensive marketing campaigns that focus on brand awareness and the company's longstanding reputation.

Buyers have immense bargaining power over airlines because the cost and effort required to switch from one carrier to another is minimal. The emergence and raging popularity of third-party trip-booking websites and smartphone apps exacerbate this issue for the airlines. Most travelers do not contact an airline, such as Delta, directly to book a flight. They access sites or apps that compare rates across all carriers, enter their trip itineraries, and then choose the least expensive deal that accommodates their schedules.

Delta can respond to this market force by conducting market research and offering more direct flights at low prices to the destinations fliers search for most frequently on third-party platforms. Additionally, the company should strengthen relationships with credit card companies and strive to offer the best reward programs; customers are loath to switch carriers when they have accumulated what they view as "free" miles with a particular airline.

Potential new entrants to the marketplace represent a minimal threat to Delta. The barriers to entry in the airline industry are remarkably high. The operating costs are massive, and the government regulations a company must navigate are numerous and exceedingly complex. There is not a single airline founded during the 21st century that has even a 2% market share. JetBlue, founded in 1998, represents the newest airline to make a dent in the industry, and the company's market share is still less than one-third of Delta's.  

The list of airline suppliers is actually quite long. The list of airlines for suppliers to sell to, however, is short. This asymmetry places the bargaining power directly in the hands of the airlines. Bargaining power is particularly strong for Delta, given its position as the world's largest airline by passenger revenue in 2019. Put simply, Delta's suppliers have a strong incentive to keep the relationship on good terms . Delta can likely find a replacement supplier without a problem if the relationship goes bad. The supplier, by contrast, is unlikely to find another buyer capable of replacing the sales volume represented by Delta.

A substitute , as defined by the Five Forces model, is not a product or service that competes directly with the company's offerings but acts as a substitute for it. Thus, a United flight from New York to Los Angeles is not considered a substitute for a Delta flight with the same start and endpoints. Examples of substitutes are making the trip by train, car, or bus. Unless a trip is very short, such as traveling from Los Angeles to Las Vegas, no methods of travel rate as viable substitutes for air travel. New York to Los Angeles is a 6.5-hour flight. The trip takes 41 hours by car or bus, and a train cannot get you there much faster. Until a new technology comes along that supplants air travel as the fastest and most convenient way to travel long distances, Delta faces little threat from substitute methods of travel.

Institute for Strategy and Competitiveness at Harvard Business School. " The Five Forces ."

Delta. " Corporate Stats and Facts ."

Bureau of Transportation Statistics. " Airline Domestic Market Share ."

Yahoo Finance. " Delta Air Lines, Inc. (DAL) ."

Delta Airlines. " 2020 Form 10-K ," Page 2.

Bureau of Transportation Statistics. " Airline Ranking 2019 ."

delta airlines business model canvas

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices

Delta Air Lines’ Business Model and Strategy Research Paper

Introduction, current strategy of delta airlines, works cited.

Delta Airlines is one of the oldest American airlines that was founded in 1924 as a small aerial crop dusting operation (“About Delta” par. 1). Nowadays, it is a large global airline with more than 160 million customers using its services annually. Like many other airline companies, Delta faces the challenges caused by the changes in fuel prices, the frequency of terroristic attacks in the air or airports, and the necessity to stay competitive in the market. Any successful manager should understand the importance of a properly chosen strategy in the company and the worth of all actions taken and the decisions made.

In this report, Delta will be analyzed in terms of its strategic alignment, competitive advantage, marketing achievements, customer value, and profit propositions to clarify if its business model and current strategy are successful enough not to change it but promote its development.

Delta Airlines spends much time and effort to analyze its current situation and the changes it can be promoted regarding the actual state of affairs. The latest reports of the company show that Delta, as well as other airline companies in the USA and the whole world, faces the problem caused by the changes in jet fuel prices. Even if these prices fell at the end of 2014 (“Delta Air Lines INC: Form 10-K” 4), fuel expenses remain one of the main problems for the company.

Therefore, Delta tries to focus its strategies on the improvement of the situation and the creation of control over such types of expenses. For example, the idea to own a refinery to contain fuel costs seems to be a unique strategy introduced by the company because Delta can manage its fuel costs in a variety of ways (Cederholm 10). For example, Delta’s attempts to purchase agreements and practice fuel hedging are not new, but the idea to operate a refinery makes it unique and competitive. Also, Delta is involved in numerous activities to reengineer the business model to promote high employee engagement and gracious customer service (“Richard Anderson: Chief Executive Officer” par. 2).

Strategic Alignment

The VRIO framework is the tool to be used to comprehend if the company under analysis succeeds in choosing actions, articulating its goals, and making the decisions that influence the quality of life of the company. Regarding the question of value (Frynas and Mellahi 121), Delta continues extending its reach to customers using partnerships with Alitalia and other trans-Atlantic joint ventures (“Richard Anderson: Chief Executive Officer” par.3) and developing the refinery strategy that helps to reduce fuel costs (Cederholm 10). Regarding the fact that not many companies can use the same strategies, the question of rareness gets a positive answer because the resources of Delta are competitive indeed. Besides, its activities are hard to imitate due to the way the company is organized and focused on the goals to be achieved.

Competitive Advantage

To stay competitive, Delta tries to distinguish it from its competitors. The idea to buy a refinery is one of the most powerful decisions made by the company because it helps to increase fuel supply, reduce fuel prices, and stay confident in the quality of fuel used (Cederholm 10). Cooperation and the establishment of productive relations with customers are the other aspects of the work done by the company. Delta has already implemented a flyer program with the help of which customers can get benefits and enjoy the opportunities offered. This program introduces the incentives to customers and increases their desire to travel on Delta (“Delta Air Lines INC: Form 10-K” 5). All these decisions and the abilities to combine the financial benefits, customer satisfaction, and employee motivation underline the efforts of Delta to resist the power of its main competitors that are Southwest, United, and American.

Market Achievements

The results that have been achieved by Delta show how effective and responsible the company can be. The demonstration of sustainable positive financial results, investments in healthy communities, and the protection of natural environments help to not only satisfy the legal obligations but also to provide Delta’s stakeholders that are all investors, employees, customers, and partners with clarity and confidence (“Corporate Responsibility” par.1).

Risk Activities

Delta has established a framework that aims at addressing and analyzing risks in the form of the ERM process (“Delta Corporate Responsibility Report” 13). Therefore, the company protects itself against the activities and unethical decisions that may put the company at risk. Intense competition, fuel prices, and dependence on the North American market are the main risk factors that should be considered. Besides, Delta has some problems with its reputation, and its brand and image have been considerably worsened during the last several years. Therefore, it is necessary to focus on customers and their possible contributions to the company.

Company’s Viability

Successful leadership, attention and respect to customers, and investigation of fuel price policies should help Delta achieve high results, overcome the challenges, and introduce the services that can impress people and save the company’s money.

Richard Anderson is one of the successful examples of leaders in the company. His abilities to combine his personal aviation experience with the needs of the company are impressive. When he joined the Board of Directors and became CEO, he made several changes to underline the role of customers in the company and the necessity to think about cost control (“Richard Anderson: Chief Executive Officer” par. 2).

About Delta n.d. Web.

Cederholm, Teresa. “ Delta’s Unique Strategy: Owning a Refinery to Contain Fuel Costs. ” Market Realist . 2014. Web.

Corporate Responsibility n.d. Web.

Delta Air Lines INC: Form 10-K (Annual Report) 2014. Web.

Delta Corporate Responsibility Report 2014. Web.

Frynas, Jedrzej, George, and Kamel Mellahi. Global Strategic Management , New York, NY: Oxford University Press, 2015. Print.

Richard Anderson: Chief Executive Officer n.d. Web.

  • Chicago (A-D)
  • Chicago (N-B)

IvyPanda. (2024, February 26). Delta Air Lines' Business Model and Strategy. https://ivypanda.com/essays/delta-air-lines-business-model-and-strategy/

"Delta Air Lines' Business Model and Strategy." IvyPanda , 26 Feb. 2024, ivypanda.com/essays/delta-air-lines-business-model-and-strategy/.

IvyPanda . (2024) 'Delta Air Lines' Business Model and Strategy'. 26 February.

IvyPanda . 2024. "Delta Air Lines' Business Model and Strategy." February 26, 2024. https://ivypanda.com/essays/delta-air-lines-business-model-and-strategy/.

1. IvyPanda . "Delta Air Lines' Business Model and Strategy." February 26, 2024. https://ivypanda.com/essays/delta-air-lines-business-model-and-strategy/.

Bibliography

IvyPanda . "Delta Air Lines' Business Model and Strategy." February 26, 2024. https://ivypanda.com/essays/delta-air-lines-business-model-and-strategy/.

  • Oil Refineries in Nigeria and the Gulf Region
  • Delta Air Lines Company's Operations Management
  • Delta Air Lines' Strengths and Weaknesses
  • Merger of Delta & Northwest Airlines
  • Challenges in the Business Environment: Delta
  • Delta Airlines HR Management
  • Delta Corp Ergonomic Factors
  • Internal Analysis: Delta Air Lines
  • Mergers and Acquisitions: Delta Air Lines and Great Lakes Airlines
  • Delta Airlines Affected by Globalization and Technological Changes
  • Detroit Free Press and Detroit Daily News' Merger
  • Johnson Controls Company's 2012 Financial Results
  • Emaar Properties Company's Competitors and Performance
  • Emirates Airlines' Quality Management Principles
  • Apple Inc.'s Stability, Growth, and Retrenchment

Logo.

Technology and Operations Management

Mba student perspectives.

  • Assignments
  • Assignment: The TOM Challenge: TOM…

Delta Airlines: Flying High in a Competitive Industry

delta airlines business model canvas

Despite stiff rivalry in the airline industry, Delta consistently finds innovative ways to soar above the rest.

The US airline industry is known for its low margins and intense competition. In such a crowded, high-risk marketplace, alignment between business and operating models is essential. One company that has shown effectiveness in aligning these models is Delta Airlines.

Delta’s history illustrates all too well the risky, cutthroat environment of the airline industry. In 2005 Delta filed for bankruptcy protection, despite then being the 3 rd largest airline in the United States. At the time, the industry faced eroding margins due to steep hikes in fuel prices and increased competition from low-fare carriers [i.] Emerging from bankruptcy, Delta needed to align its business and operating models in a way that would allow it to serve its customers while not repeating the same mistakes, such as high fuel and fixed costs, that led to its 2005 bankruptcy.

Fast-forwarding to 2015, Delta has become an industry leader. In 2013 the company boasted the highest net profit in the history of the industry, and is currently the world’s largest airline by passenger volume [ii.] Delta achieved this success through its business and operating model alignment. Delta’s business model focuses on attracting corporate travelers, a segment characterized by high margins and low price sensitivity. Delta also strives for a flexible business model that focuses on shifting their cost structure from fixed to variable costs as much as possible. Together, this model allows the company to scale up or down to meet demand, while maintaining higher margins than competitors.

Delta’s operating model supports its business model through four key activities: purchasing used aircraft, vertical integration, low-unionization of labor, and industry-leading customer service. Airlines are known for their high fixed costs, with many airlines opting to purchase expensive new aircraft that come with low maintenance costs but high acquisition costs. Delta’s strategy, however, has been to purchase used aircraft, which offer cheaper acquisition costs but higher maintenance costs. This model leaves Delta with lower fixed costs but higher variable (maintenance) costs, allowing them to quickly scale up or down to meet demand, while not being burdened by the same level of fixed costs of other airlines [iii.] This creates sustained competitive advantage and reduced operational risk in the event of rapid increases or decreases in volume.

Delta’s operating strategy also includes owning their own fuel refinery. Although fuel hedging and futures trading have become standard for airlines, Delta has taken this further by owning a source of low-cost fuel, protecting them from cost spikes [iv.] Through vertical integration Delta reduced its per-gallon fuel prices by $.10 in the first quarter of 2014 [v.] If fuel prices rise, Delta is positioned to respond to this pressure and maintain its competitive price advantage.

Pathways to Just Digital Future

Delta-Airlines-Refine_Hugh

Delta’s operating strategy also translates directly into its workforce. Airlines are known for high unionization rates, with approximately 50% of airline employees unionized. Delta’s unionization rate is closer to 18%, allowing it to keep base wages lower [vi.]   Instead of offering high fixed wages, Delta instead offers industry-leading profit sharing plans. This allows Delta to shift a portion of their labor costs from fixed to variable, allowing the airline to remain competitive even in market downturns, and reducing the risk of an employee strike. In 2014, Delta’s profit sharing program yielded nearly one month’s salary to each employee [vii.]

Delta’s business model also focuses on delivering high customer service to appeal to their core demographic, business travelers. Delta’s commitment to customer service is evidenced by their recent multi-billion dollar investment in enhanced training programs for customer service agents, designed to improve the customer experience. Delta’s commitment to customer service also led to their development of the first mobile bag tracking feature on smartphones [viii.] Delta has even focused on creating a more lighthearted atmosphere in-flight, finding ways to bridge safety and fun in recent in-flight videos seen below. These new changes have been well received by business travelers, leading to Delta’s #1 ranking by corporate clients four years in a row by Business Travel News [ix.]

Delta is a solid example of a company that learned from its previous mistakes. The 2005 bankruptcy served as a wake up call for the company to better align its core business and operating models. This new improvement in alignment and strategy has led to gaining competitive advantages with respect to fuel prices, labor, customer service, and greater operating cost flexibility. With this new strategy in place, Delta is well positioned to see its profits reach new heights.

[i.]  http://money.cnn.com/2005/09/14/news/fortune500/delta/

[ii.]   http://www.deseretnews.com/article/865601066/Delta-tops-list-of-most-profitable-airlines-in-2013.html?pg=all

[iii]   http://marketrealist.com/2014/06/deltas-capacity-current-size-future-purchase-commitments/

[iv.]   https://hbr.org/2014/12/deltas-ceo-on-using-innovative-thinking-to-revive-a-bankrupt-airline

[v.]    http://marketrealist.com/2014/06/deltas-unique-strategy-owning-refinery-contain-fuel-costs/

[vi.]   http://marketrealist.com/2014/06/delta-airlines-margins-highest-among-peers/

[vii.]  http://www.hrcapitalist.com/2014/04/how-delta-airlines-de-unionized-17000-employees.html

[viii.]   http://www.airlinetrends.com/2012/06/08/innovative-airlines-2012-delta/

[ix.]    http://news.delta.com/delta-named-top-airline-business-travel-news-readers-fourth-consecutive-year-1

Student comments on Delta Airlines: Flying High in a Competitive Industry

As a Delta frequent flyer, the changes you highlight are evident in their day to day operations and their customer service. I remember when there was much debate about Delta purchasing their own refinery. Many analysts saw it as a risky move, but Delta was looking long-term, and saw the vertical integration as a potential competitive advantage. The customer service is also industry leading. I maintained loyalty to the program, and became less price sensitive as a result. Delta saw the value in the intangibles, and created value. Overall, very good choice for your project. This is a stellar example of a company whose operations are aligned with its core business strategy.

Great write-up Sam. I generally dislike domestic air carriers but Delta definitely stands out in terms of quality and service. Their fleet appears newer, flight attendants are friendlier, and their food/beverage service is superior among the U.S. carriers. Although I agree that focusing on business travelers is ideal, I wonder if recent competition in the industry is pushing Delta to adjust its strategy. Southwest Airlines is now a player for business travelers and the recent merger of American/U.S. Airlines has further increased the competition. With each airline focused on the profitable business segment, how does Delta continue to differentiate itself? In addition, does the traditional hub-and-spoke model result in greater operational efficiency (personally I think it leads to more inefficiencies)?

Sam – I enjoyed your post, and as a recent Delta convert, I was interested to read more about the business and operational efficiencies behind the scenes that seem to have led to a more pleasant flying experience. For business and personal travel, I have traditionally gone with other domestic carriers because of corporate alliances and geographic locations – but have recently been flying Delta more frequently and have been very impressed! Honestly, I was unaware of some of the vertical integration and ownership of the refinery – but I feel like some of the business efficiencies realized are parallel to some of the improvements in customer experience – and are all focused on delivering value through the whole experience by capitalizing on even the smallest of details. I agree that Delta has a business-traveler approach – but this replication for customer service for personal travel has greatly persuaded me to fly Delta for all types of flights. I think the company has done an amazing job, recovering from and rebranding the company following bankruptcy – and that they have been successful in business efficiencies, and am curious how they will continue to distinguish themselves in the future. As other carriers, such as Southwest and the recent USAir/American merger attempt to emulate some of their practices – will they be able to continue to differentiate themselves as both the carrier for business and personal travelers? I know I am committed to continuing to use Delta and am excited to see how they further reinvent themselves in the future!

Leave a comment Cancel reply

You must be logged in to post a comment.

  • Delta Air Lines

delta airlines business model canvas

Careers at Delta Air Lines

Delta Air Lines aims to provide reliable and affordable domestic and international travel services to general consumers and business customers

Business segments

Delta Air Lines organises its operations into two reportable business segments:

  • Airline Segment , which comprises the Company’s airline business as a single unit, which provides scheduled air transportation for passengers and cargo throughout the US and internationally, as well as other ancillary airline services;
  • Refinery Segment , comprising the operation of the Trainer Oil Refinery near Philadelphia and its related assets, and the supply of jet fuel to the Delta Air Lines fleet.

Delta Air Lines in its current form is the result of numerous mergers and acquisitions over a period of close to 100 years. The Company traces its history back to the establishment of crop dusting venture Huff Daland Dusters in 1924. The Company was transformed into a commercial carrier in 1929 under the name Delta Air Service, and began developing a network of domestic connections, starting with its inaugural flight between Dallas, Texas and Jackson, Mississippi.

In the remaining years of the 20 th Century, Delta continued to develop its domestic presence, making a number of acquisitions, including those of Comair, Western Airlines, Chicago and Southern Airlines, and Atlantic Southeast Airlines. Despite the Company’s apparent growth, it fell into bankruptcy in 2005. Delta Air Lines has since implemented a reorganisation of its operations, and in 2007 merged with Northwest Airlines. The Company has restabilised and continued to be one of the most significant US carriers.

Delta Air Lines trades shares on the New York Stock Exchange. Its current market capitalisation is $27.37 billion.

delta airlines business model canvas

Business model of Delta Air Lines

Customer segments.

Delta Air Lines serves a range of customers, including both general consumers and commercial entities. The majority of the Company’s customers are general passengers, comprising individual travellers, groups and families. While Delta Air Lines offer competitively priced air fares, it is not a low-cost airline and as such does not market itself to customers seeking the cheapest prices.

The Company also provides corporate travel management services to professionals, and provides a specialist program for small and medium-sized enterprises to ensure that they receive a good return on their investment in air travel. Commercial and general consumer customers are also provided cargo and shipping services, targeted largely at customers wishing to transport pets, pharmaceuticals, perishables, and high-value items.

Delta Air Lines derives the majority of its revenue from its domestic market of the US. It also serves a number of international customers divided into geographic segments named Atlantic, Pacific and Latin America.

Value Propositions

Delta Air Lines provides value to clients in the following ways:

  • Its broad network of domestic and international destinati ons, with the Company providing flights across all major US hubs, as well as international services across the Atlantic, Pacific and Latin America;
  • Its industry standing and reputation as a reliable carrier , with the Company being an established name in the industry associated with quality and being one the largest, most popular airlines in the US;
  • Its frequent-flyer reward scheme , through which customers are able to earn rewards, discounts and gain access to deals from a range of commercial partners;
  • Its network of airline partnerships , including domestic and international operators that improve the Company’s access to foreign markets and provide greater connectivity to passengers; and
  • Its in-flight services and customer care , with the Company providing on-board entertainment services, Wi-Fi connectivity, and food and drinks.

Delta Air Lines operates a website at www.delta.com, which provides information on the Company’s services, schedule, destinations and regulations. The Delta Air Lines website also hosts a booking portal, through which customers are able to book flights and hotels. An increasing number of sales are being through the Company’s online sales, as well as through its mobile app and mobile website. Additionally, Delta Air Lines operates an online store at www.deltashop.com, where customers can purchase Delta Air Lines-branded merchandise and travel accessories.

The company also operates a direct sales team, which can arrange bookings over the phone. Delta Air Lines’s own sales channels are supplemented by a network of partners, including physical travel agencies and ticketing offices across Africa, Asia, Europe, Australia, the Middle East, and the Americas, as well as numerous online travel agencies and global distribution systems. Delta Air Lines additionally operates its own kiosks across numerous airports worldwide, through which customers are able to access assistance.

Customer Relationships

Customers are able to browse flight schedules, make flight reservations, book hotels and transportation, check in for flights and manage user accounts on a self-service basis through both the Delta Air Lines website and mobile apps. This requires no direct interaction with members of the Company’s sales team.

Customers are also able to contact Delta Air Lines directly over the phone to make bookings, receiving a more personalised experience. The Company’s personal care extends to its in-airport services, where members of the Company’s staff are available to assist customers in-person throughout the check-in flight process.

Delta Air Lines provides support to customers after bookings have been made, handling enquiries and complaints over the phone and via email, facilitating cancellations, refunds, and booking adjustments. Customers are also able to interact directly with Delta Air Lines through its social media accounts with Twitter and Facebook.

Key Activities

Delta Air Lines provides scheduled air transportation and cargo services for general passengers, professionals and commercial customers both domestically in the US and internationally across Europe, Europe, Asia Pacific, the Americas, the Middle East, and Africa.

The Company operates via two separate but related business segments: the Airline segment and the Refinery segment. The Airline segment is managed as a single business unit that covers the Company’s global passenger travel and freight services, as well as cargo services, aircraft maintenance, repair and overhaul services, staffing services for third parties, vacation wholesale operations and private jet operations. The Company’s Refinery segment is concerned with the production of gasoline, diesel and jet fuel. Delta Air Lines operates through a number of subsidiary companies, notably Monroe Energy and MIPC, which jointly operate the Trainer Refinery near Philadelphia.

Key Partners

Delta Air Lines collaborates with various companies in order to provide its customers with a comprehensive and quality service. This includes a number of partnerships with other airlines and air travel providers. These partnerships are divided as follows:

  • Codesharing Partners , comprising domestic and international air carriers through which the Company is able to extend its own services, selling connecting flights for airlines such as Alaska Airlines and WestJet through its own sales channels;
  • Joint Venture Partners , with which the Company provides joint services, such as its deals with Air France-KLM-Alitalia, and Virgin Atlantic; and
  • Alliance Partners , with which the Company integrates its flight network and offers reciprocal frequent flyer benefits.

Delta Air Lines has alliance partnerships with Aeromexico, China Eastern and GOL, and participates in the SkyTeam and SkyMiles program.

Delta Air Lines also has a number of partnerships as part of its rewards scheme, with participating companies including Hertz, Europcar, Vinesse Wine Clubs, Nicor Solutions, Biscoff Store, and Alamo.

Key Resources

Delta Air Lines’s key resources are its fleet of aircraft, its physical infrastructure and ground facilities, its oil refinery assets, its sales channels – notably its online channel, its IT infrastructure, its partnerships and alliances, and its personnel. Delta Air Lines controls a fleet of more than 900 aircraft of varying sizes, including aircraft operated by regional carrier partners on the Company’s behalf.

Cost Structure

Delta Air Lines incurs costs in relation to the acquisition and maintenance of its aircraft, the purchase and supply of consumables – in particular jet fuel, the operation and maintenance of its oil refining assets, its implementation of sales and marketing programs, the maintenance of its physical infrastructure and ground support facilities, the management of its partnerships and alliances, the maintenance of its IT infrastructure, and the retention of its personnel.

Delta Air Lines’s most significant costs relate to the payment of salaries and benefits to its workforce of approximately 83,000 full-time or equivalent staff, amounting in 2015 to $8.78

Revenue Streams

Delta Air Lines generates its revenue through the provision of air travel services to consumers and commercial entities. Its revenue is reported in the following categories:

  • Passenger , comprising revenue derived from passenger air fares and ancillary services provided through the Company’s mainline operations and its network of regional partner carriers;
  • Cargo , comprising revenue derived from the provision of freight and shipping services on both domestically and internationally through the use of cargo space on regularly scheduled passenger aircraft; and
  • Other , comprising operations such as aircraft maintenance, repair and overhaul, staffing services, vacation wholesale operations, and private jet operations.

In 2015 Delta Air Lines generated $40.70 billion in total operating revenue, up slightly on the $40.36 billion recorded by the Company the previous year. More than 70% of this revenue is attributed to the Company’s mainline passenger air services, which generated $28.90 billion in revenue for the year. Regionally operated air services generated $5.90 billion.

info: Ed (“Bastian”) was appointed Chief Executive Officer at Delta Air Lines in May 2016, having previously served as the Company’s President since 2007. Bastian has been with Delta Air Lines for close to 20 years. He joined the Company in 1998 as Vice President of Finance and Controller. He went on to receive a promotion to Senior Vice President in 2000, but left the Company in 2004 to become Senior Vice President and Chief Financial Officer of Acuity Brands. Bastian’s departure from Delta Air Lines lasted only six months, with Bastian returning in the role of Chief Financial Officer. He has also served as Chief Restructuring Officer. Before joining Delta Air Lines, Bastian worked for a number of years at Frito-Lay International and as a Partner with Price Waterhouse.

info: Glen (“Hauenstein”) has served as President of Delta Air Lines since May 2016, assuming the position left vacant by Bastain. Hauenstein previously served as the Company’s Executive Vice President and Chief Revenue Officer. Hauenstein joined Delta Air Lines in 2005 and is credited with developing the Company into an established provider of international air travel, in addition to existing domestic operations. Hauenstein is an experienced air travel executive. Before joining Delta Air Lines, he served as Vice General Director for Alitalia, serving in the dual role of Chief Commercial Officer and Chief Operating Officer, prior to which he was a long-serving employee of Continental Airlines, where he held numerous roles – including Senior Vice President of Network – over a spell of more than 15 years.

info: Gil (“West”) serves as Senior Executive Vice President and Chief Operating Officer at Delta Air Lines. He is also a director of the American Cancer Society and Business Leaders for Michigan. West Delta joined Delta Air Lines in 2008, leading the Company’s integration with Northwest airport. He has worked within the aviation industry for a number of years. Prior to joining Delta Air Lines, West worked for Laidlaw Transit Services, serving as its President and Chief Executive Officer. He has also held leadership roles at Northwest Airlines, United Airlines and The Boeing Company.

408.000 + job opportunities

delta airlines business model canvas

Not yet a member? Sign Up

join cleverism

Find your dream job. Get on promotion fasstrack and increase tour lifetime salary.

Post your jobs & get access to millions of ambitious, well-educated talents that are going the extra mile.

First name*

Company name*

Company Website*

E-mail (work)*

Login or Register

Password reset instructions will be sent to your E-mail.

Business Strategy Hub

  • Search 82644
  • Search 2438
  • Search 42102

delta airlines business model canvas

Delta Airlines Mission Statement | Vision | Core Values | Strategy (2024 Analysis)

delta airlines business model canvas

Company: Delta Airlines CEO : Ed Bastian Year founded: 1925 Headquarter:   Atlanta   Employees: : 83,000  Type: Public Ticker Symbol: DAL Market Cap ( Sept 2022): $19.98 billion Annual Revenue (2021) : $29.89 billion Profit | Net income ( 202 1):  $280 million

Products & Services:  In-flight ǀ special services ǀ check-in options    Competitors: United Airlines | American Airlines | Southwest Airlines

Did you know? Delta Airlines is the most awarded airline service in the US because of employees’ professionalism, dedication, and passion. Top magazines such as Wall Street Journal , Fortune , and Business Travel News have recognized the company for serving more than 200 million passengers annually.

Typically known as Delta, the company is one of the major airlines in the USA and a legacy carrier. The airline is also among the oldest services in operation. Established in 1925, Delta Airlines has grown its market base through differentiated and client-tailored services.

It has become a first choice among people with a vast inter-state demand. Since 1900, the company has dedicated itself to meeting customers’ demands. It has served over 200 million passengers annually over the years.

Headquartered in Atlanta, Georgia, it’s among the world’s most trusted and oldest airlines, with over 80,000 employees who take pride in the company’s significant success. The company has evolved enormously since its inception. Delta has offered new opportunities as a global airline by running operations across 275 destinations in 50 countries.

Delta Airlines is one of the leading global airlines with a mission to create innovative opportunities and expand its horizons by connecting communities and people.

Delta Airlines generates annual revenue of $29.89 billion.

Table of Contents

Delta Airlines Mission Statement

“Making Connections”

Delta Airlines is well-known as one of the purpose-driven brands in the USA. Its concise yet impactful mission statement shows unwavering commitment to improving people’s lives. The company takes pride in its workforce and understands its obligation to make traveling easy and hassle-free. Some of the critical components of Delta Airline’s mission statement are as follows.

Mission Statement Analysis

  • Putting Passengers First

Putting its customers first is the mission that the leading airline company embraces as a customer-oriented corporation. This goal in the mission statement also indicates the compassionate services Delta Airlines delivers to its customers with help from 80,000 competent employees. The company considers its employees the heart of its services in everything it does.

Delta Airlines has always been committed to creating a people-centric culture that many workplace experts have recognized and appreciated. The company ensures to improve services by implementing a culture and customer-focused hiring efforts. The company’s leaders revise and upgrade policies to attract more customers and retain a competent workforce.

  • Addressing and Improving Environmental Impact

The mission statement reflects that Delta Airlines is focused on addressing and managing its jet fuel use. The company works hard to lower its net aviation emission by 50 percent by 2050. In addition, the company encourages its people to get creative in reducing their individual impact.

Beyond that, Delta’s people are coming up with innovative solutions to reduce their impact by limiting waste, recycling, and engaging customers, and employees.

  • Supporting Diversity and Inclusion

The aim to “connect people” in the leading airline’s mission statement demonstrates the company’s belief in supporting diverse communities. Delta Airlines’ three-year plan outlines its strategy to increase diversity in the company, specifically in its leadership roles. The company also promotes accountability. According to the company, diversity is more like a journey that takes effort and time to show results.

  • Building Healthy Communities

Delta has pledged to invest one percent of its profit (ten million) in various charitable causes. The company firmly believes in improving the community it works for and serves. This goal is reflected in the airline company’s mission.

Delta Airlines is committed to compensating its 80,000 workers for a service day with community partners of their choice. It proudly shares the impact these efforts create across the world.

  • Leading the World Safely

Delta Airline’s commitment to its employees and customers begins with their safety. One of its objectives is to provide customers with the safest traveling experience.

delta airlines business model canvas

Delta Airlines Vision Statement/ Purpose

“The world. Reflect on the world. Respect the world. Our purpose is beyond flight.”

Delta Airlines values its customers and considers them a part of the family. The vision statement indicates the company’s desire to personalize its services and make maximum impact. The statement contains the following characteristics:

  • Improving Global Reach

Delta Airlines has expanded its destinations over the years to facilitate its customer base. The company’s ambition is to become a global entity. The company also sets itself apart from other airlines by providing quality customer care to build a strong image beyond its local audience.

The company’s current efforts to teach sign language to employees show its determination to support inclusiveness.

  • Becoming a Dependable Airline

The desire to serve “beyond flight” in the vision statement demonstrates Delta Airlines’ ambition to be an airline that people rely on. In addition to unparalleled travel services, community involvement and company engagement are other ways to serve people. These efforts have increased the company’s popularity among consumers.

Delta Airlines Core Values

Delta Airlines possesses strong core values , including integrity, honesty, leadership, and perseverance. These values serve as the rules that define the company’s identity and build a solid foundation for the company’s culture.

The company’s culture truly reflects these values as they guide employees and help them align their personal and professional goals.

Using these values, Delta Airlines has distinguished its stakeholder treatment and customer services over the years, helping it rank among the top most sought-after airlines in the world.

 References & more information

  • Delta Airlines The Delta Customer Experience Delta Airlines,
  • Delta Airlines, Corporate Stats, and Facts Delta Airlines,
  • Delta Airlines, Delta: America’s most-awarded airline Delta Airlines,
  • Delta Airlines, Delta No. 18 among Fortune’s World’s Most Admired Companies Delta Airlines,
  • Delta Airlines Delta is ranked the No. 1 US airline by Wall Street Journal . Delta Airlines,
  • Delta Airlines, For the 11th consecutive year, Delta was named No. 1 in Business Travel News Survey. Delta Airlines,
  • Delta Airlines, Fueling a Sustainable Airline: Why Delta’s promise to connect the world begins with caring for it . Delta Airlines,
  • Featured Image by  Miguel Ángel Sanz

 Tell us what you think? Did you find this article interesting? Share your thoughts and experiences in the comments section below.

delta airlines business model canvas

Kevin Johnson

Add comment, cancel reply, you may also like.

delta airlines business model canvas

Lifetime Mission Statement | Vision | Core Values | Strategy (2024 Analysis)

Company: Lifetime CEO: Bahram Akradi Year founded: 1992 Headquarter: Chanhassen, Minnesota Employees: 36,000 Ticker Symbol: LTH Market Cap (July 2022): $2.8 Billion Annual Revenue (2021): $1.38 Billion Profit | Net...

delta airlines business model canvas

Best Buy Mission Statement | Vision | Values & Culture (2024 Analysis)

Company: Best Buy Co, Inc. Founder: Richard M. Schulze Year founded: 1966 CEO: Corie Sue Barry Headquarter: Richfield, Minnesota, United States Employees (May 2020): 125,000 Ticker Symbol: BBY Type: Public Annual...

delta airlines business model canvas

Cisco Mission Statement | Vision | Core Values | Strategy (2024 Analysis)

Company: Cisco Systems, Inc. CEO: Charles H. Robbins Year founded: 1984 Headquarter: San Jose, California Number of Employees: 83,300 Type: Public Ticker Symbol: CSCO Market Cap (Sept 2022): $166.49 billion Annual...

delta airlines business model canvas

Oracle Mission Statement | Sustainability Goals | Core Values | Strategy (2024 Analysis)

Company: Oracle CEO: Safra Catz Year founded: 1977 Headquarter: Austin, Texas Number of Employees: 143,000 Type: Public Ticker Symbol: ORCL Market Cap (Sept 2022): $168.26 billion Annual Revenue (FY2022): $42.44...

delta airlines business model canvas

United Airlines Mission Statement | Vision | Core Values | Strategy (2024 Analysis)

Company: United Airlines CEO: Scott Kirby Year founded: 1926 Headquarter: Willis Tower, Chicago, Illinois, United States Employees: 84,100 Type: Public Ticker Symbol: UAL Market Cap (July 2022): $12 Billion Annual...

delta airlines business model canvas

Ford Mission Statement | Vision | Values | Strategy (2024 Analysis)

 Company: Ford Motor Company CEO: Jim Hackett Founders: Henry Ford Year founded: 1903 Headquarter: Dearborn, MI Number  of Employees (Dec 2019): 190,000 Type: Public Annual...

delta airlines business model canvas

Boeing Mission Statement | Vision | Values | Strategy (2024 Analysis)

Company: The Boeing Company CEO: David L. Calhoun Founder: William E. Boeing Year founded: 1916 Headquarter: Chicago, Illinois Employees (May 2021): 141,000 Type: Public Ticker Symbol: BA Annual Revenue (2020):...

delta airlines business model canvas

Chick Fil-A Mission Statement | Vision | Core Values | Culture | Strategy (2024 Analysis)

Company: Chick-fil-A CEO: Andrew Truett Cathy Year founded: 1946 Headquarter: College Park, Georgia Employees: 140,000 Type: Private Annual Revenue (2021): 5.8 billion  Profit | Net income (2021): 1.24...

Mayo Clinic Mission Statement | Vision Statement | Core Values | Analysis

Mayo Clinic Mission Statement | Vision Statement | Core Values | Strategy (2024 Analysis)

Company: Mayo Clinic CEO: Gianrico Farrugia, M.D. Year founded: 1864 Headquarter: Rochester, Minnesota, U.S.  Number of Employees: 63,000 Type: Private Annual Revenue (FY2021): $15.7 billion Profit | Net...

delta airlines business model canvas

Samsung Mission Statement | Vision | Values | Strategy (2024 Analysis)

Company: Samsung Electronics Co. Ltd. Founder(s): Lee Byung-Chul Year founded: March 1, 1938 CEO: Kim Ki Nam (Mar 2018–) Headquarter: Seoul, South Korea Number of Employees (Dec 2021): 267,937 Type: Public...

Recent Posts

  • Who Owns TracFone
  • Who Owns Rolex?
  • Who Owns Bellagio?
  • Who Owns Skechers?
  • Who Owns JetBlue?
  • Who Owns Ciroc?
  • Who owns Aston Martin?
  • Top 10 Bed Bath and Beyond Competitors and Alternatives
  • Who Owns Sheraton?
  • Who owns Volkswagen?

Business Strategy Hub

  • A – Z Companies
  • Privacy Policy

Buy us Coffee

If you like our work and would like to show appreciation to our team, buy us coffee!

Subscribe to receive updates from the hub!

  • Red Queen Effect
  • Blue Ocean Strategy
  • Only the paranoid survives
  • Co-opetition Strategy
  • Mintzberg’s 5 Ps
  • Ansoff Matrix
  • Target Right Customers
  • Product Life Cycle
  • Diffusion of Innovation Theory
  • Bowman’s Strategic Clock
  • Pricing Strategies
  • 7S Framework
  • Porter’s Five Forces
  • Strategy Diamond
  • Value Innovation
  • PESTLE Analysis
  • Gap Analysis
  • SWOT Analysis
  • Strategy Canvas
  • Business Model
  • Mission & Vision
  • Competitors
  • Buy Us Coffee!

delta airlines business model canvas

You are about to leave Delta.com

You will be redirected to a website that is not owned by Delta Air Lines and is not within our control. The site may not follow the accessibility policies as Delta Air Lines.

Would you like to continue?

Delta spotlights strengthened competitive advantages and brand momentum

NEW YORK, Dec. 16, 2021 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today presents its plan for leading the air travel industry through the next phase of the recovery, powered by an intense focus on customers, the strength of its trusted consumer brand and its values-based, people-centric culture of service.

Delta Air Lines and the Delta Connection carriers offer service to nearly 370 destinations on six continents. For more information visit news.delta.com. (PRNewsFoto/Delta Air Lines)

The airline is presenting its strategic priorities at its Capital Markets Day for the investor community, hosted at the New York Stock Exchange in New York City.

"It's clear that the pandemic stress-tested the people of Delta in unprecedented ways, and our competitive advantages not only endured but were strengthened throughout the crisis," said Ed Bastian, Delta's CEO. "Delta is outperforming the industry, and our path forward to leading the next phase of the recovery is taking shape thanks to the incredible work of our 75,000 people worldwide."

During the event, senior leadership will discuss how Delta is expanding its platform to create value over the long term. Highlights from the day will include:

  • Competitive Advantages:  Delta's actions during the pandemic further strengthened its competitive advantages and enhanced its position as a trusted consumer brand.
  • Industry Leadership:  Delta is leading the industry operationally and financially by demonstrating agility, operational excellence and discipline.
  • Brand Preference:  Delta continues to elevate the customer experience through its best-in-class service and by investing across the travel ribbon, enhancing brand preference and loyalty.
  • Earnings Power:  Delta expects to deliver meaningful profitability in 2022 on its path to improved earnings power beyond pre-pandemic levels by 2024.
  • Financial Foundation:  Delta's top financial priority is restoring its financial foundation, with a focus on efficiency and cash generation to achieve investment grade metrics by 2024.

"As our profitability improves, we are focused on reducing debt and strategically investing to build on our leadership position," said Delta CFO Dan Janki. "We have a compelling strategy that we believe will allow us to exceed 2019 financial performance, deliver industry-leading margins and generate significant cash to de-lever the balance sheet over the next three years."

Delta's financial targets will be discussed in greater detail at the event, and include the following:

Financial Targets:

Additional Metrics and Assumptions:

  • 2024 operating margin in mid-teens
  • 2024 operating cash flow > $9B
  • 2024 adjusted debt / EBITDAR between 2.0x and 3.0x
  • 2024 ending liquidity between $5B and $6B
  • 2024 ROIC in the mid-teens

"As we look ahead, our priorities are strengthening our trusted consumer brand, restoring our financial performance and building a better future for our people and our planet," Bastian said. "Our ambition is to transcend the industry and create significant long-term value for our people and our owners. As reconnecting the world becomes more important than ever, we are accelerating our path to reshape and redefine air travel."

Delta also issued an investor update, raising December quarter financial guidance. The airline now expects to generate an adjusted pre-tax profit of ~$200 million in the December quarter.

Capital Markets Day will begin at 8:15 a.m. Eastern Standard Time and includes presentations from Bastian and Janki as well as Delta President Glen Hauenstein and President-International Alain Bellemare. It also will feature a Q&A with Bastian and Stephen J. Squeri, Chairman and CEO of American Express, in which they will discuss the growing value of the partnership between the two companies in the recovery and beyond.

Attendance in person is by invitation only. Presentation slides and a live webcast will be available on Delta's Investor Relations website at https://ir.delta.com . A replay of the event will be available shortly after the event.

About Delta

Delta Air Lines is the U.S. global airline leader in safety, innovation, reliability and customer experience. Powered by our employees around the world, Delta has for a decade led the airline industry in operational excellence while maintaining our reputation for award-winning customer service.

Today, and always, nothing is more important than the health and safety of our customers and employees. Since the onset of the COVID-19 pandemic, Delta has moved quickly to transform the industry standard of clean to ensure a safe and comfortable travel experience for our customers and employees.

With our mission of connecting the people and cultures of the globe, Delta strives to foster understanding across a diverse world and serve as a force for social good.

Forward Looking Statements

Statements made in this press release that are not historical facts, including statements regarding our financial targets, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the material adverse effect that the COVID-19 pandemic is having on our business; the impact of incurring significant debt in response to the pandemic; failure to comply with the financial and other covenants in our financing agreements; the possible effects of accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems on which we rely; disruptions in our information technology infrastructure; our dependence on technology in our operations; our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to realize the full value of intangible or long-lived assets; labor issues; the effects of weather, natural disasters and seasonality on our business; the cost of aircraft fuel; the availability of aircraft fuel; failure or inability of insurance to cover a significant liability at Monroe's Trainer refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including costs related to compliance with renewable fuel standard regulations; our ability to retain senior management and other key employees, and to maintain our company culture; significant damage to our reputation and brand, including from exposure to significant adverse publicity; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive government regulation we are subject to; the impact of environmental regulation, including increased regulation to reduce emissions and other risks associated with climate change, on our business; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and our Quarterly Report for the quarterly period ended September 30, 2021. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.

Non- GAAP Financial Measures

Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

Delta is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items will not be known until the end of the period and could be significant.

Cision

SOURCE Delta Air Lines

Investor Email Alerts

To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. After submitting your request, you will receive an activation email to the requested email address. You must click the activation link in order to complete your subscription. You can sign up for additional alert options at any time.

At Delta Air Lines, we promise to treat your data with respect and will not share your information with any third party. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the ‘unsubscribe’ section below. If you experience any issues with this process, please contact us for further assistance.

By providing your email address below, you are providing consent to Delta Air Lines to send you the requested Investor Email Alert updates.

Email Alert Sign Up Confirmation

© Delta Air Lines, Inc. | Travel may be on other airlines.

Terms and conditions apply to all offers and SkyMiles benefits. See specific offer for details, and visit SkyMiles Membership Guide & Program Rules

--> Read more » -->