Delta Airlines SWOT analysis

by

Delta Airlines SWOT analysis – SWOT analysis of Delta Airlines: Delta Airlines is the oldest airline in the USA with its headquarters in Atlanta Georgia founded in the year 1924 under the name Huff Daland Dusters. In addition, it is credited with being the world’s second-largest airline for passengers, Delta has carried around 160 million passengers and 277.6 billion miles of passenger travel.

Based on basic values like integrity, honesty, and respect, Delta Airlines has also exhibited an unwavering dedication to the environment and society, investing in a variety of corporate social responsibility initiatives. With a fleet of approximately 857 aircraft Delta is able to fly to around 350 destinations around the globe.

The company had annual revenue of 43 billion dollars in 2017 and is currently employed by more than 80.000 employees. With a long background, Delta Airlines continues to be among the top companies not only within the USA but globally in the aviation industry.

Delta Airlines fun facts: In 2016, Delta announced that it would offer free in-flight entertainment for passengers on two-class aircraft.

About Delta Airlines – SWOT analysis of Delta Airlines

SWOT analysis of Delta Airlines

[wp-svg-icons icon=”office” wrap=”I”] Company: Delta Air Lines, Inc.

[wp-svg-icons icon=”user” wrap=”I”] CEO: Ed Bastian

[wp-svg-icons icon=”user” wrap=”I”] Founder: Collett E. Woolman

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: 2 March 1925, Macon, Georgia, United States

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Atlanta, Georgia, United States‎

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: USD$29.9 billion

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: USD$280 million

[wp-svg-icons icon=”users” wrap=”I”] Number of employees: 83,000

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: Delta’s Onboard Experiences | Basic Economy | Comfort Plus | First Class | Premium Select | Delta One® | Food & Beverage | Onboard Dining | Special Meals | Inflight Entertainment | Onboard Services | Delta Studio® | Onboard Entertainment | Inflight TV | Inflight Movies | Inflight Audio | Onboard WiFi | Live TV | Sky Kids

[wp-svg-icons icon=”globe” wrap=”I”] Website: www.delta.com

Delta Airlines Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: United Airlines Holdings | Southwest Airlines | American Airlines Group | Air France KLM | Qatar Airways | Etihad Airways | Spirit Airlines | Alaska Air Group | Cathay Pacific

SWOT analysis of Delta Airlines – Delta Airlines SWOT analysis

SWOT analysis of Delta Airlines

SWOT Analysis Of Delta Airlines is brand-based. SWOT Analysis of Delta Airlines evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Delta Airlines’ SWOT Analysis. Below is the detailed SWOT Analysis of Delta Airlines.

Let’s talk about Delta Airlines’ SWOT assessment.

Strengths of Delta Airlines – Delta Airlines SWOT analysis

  • Revenue premium: Delta Airlines owes its ongoing growth to its revenue rate which is around 107 percent. This is because Delta’s revenue per seat mile was higher than the average for the industry, indicating that Delta was the top choice for many of its customers.
  • Hub for airlines: Delta Airlines operates from the most-requested airport hub Atlanta and is the largest single airline hub worldwide. At present, the airport offers 970 departures and more than 210 destinations. Delta operates in 59 countries.
  • High level of customer engagement: The degree of customer engagement at Delta Airlines is high and it helps them to gain regular business from existing customers. Certain frequent flier programs offered by the airline offer massive discounts for foreigners and automatic upgrades to higher-class. The airline also makes sure that they’re always in touch with their clients.
  • Concentrate on business travelers: The prime target segment for Delta Airlines is business travelers. The reason is the large margins and the low price sensitivity for these customers. They have had huge success in luring business travelers with personal service. The airline educates all its employees on customer interaction and is focused on making your flight secure and comfortable.
  • Operational Strategies: The most important components in the operational plan include the purchase of used aircraft, and reducing the effect on unionization and vertical integration and vertical integration. The company also has its own refineries, which helps them reduce expenses and improve operational performance. This change has helped them reduce their fuel expenses by .1cents per gallon.
  • Multiple hubs: While Delta Airlines primarily operate from Atlanta but they also have centers within Seattle as well as New York. Following the acquisition of 49 percent of Virgin the airline is in a position to offer greater flights into London as well as gain more use of the Heathrow terminal. The airline also bought participation from Northwest Airlines which opened up new opportunities for expansion in China to the company.

Weaknesses of Delta Airlines – SWOT Analysis Of Delta Airlines

  • Low margins: Delta Airlines just like other companies in the industry are suffering from poor margins. The unit revenue was cut significantly, and this in conjunction with increasing fuel prices reduced margins by a significant amount.
  • Not necessary investment: Delta Airlines has been involved in several issues recently and the company lost its image within the USA. In order to prevent further outages, the airline has invested in several shore-up infrastructures, including a $200 million dollar data center that is eroding the profits of the business.
  • Brand changing: The growth of low-cost airlines has attracted business away from Delta Airlines and people have changed brands from expensive airline companies to less expensive ones. This has led to a decline in the business sector.

Opportunities of Delta Airlines – Delta Airlines SWOT analysis

SWOT analysis of Delta Airlines

  • Growing demands of business trips: The amount, as well as the regularity of travel for business throughout the globe, have increased over the past couple of decades. The growth is more noticeable in Asia than in other regions of the globe. This implies that there is more opportunity for business opportunities there for Delta Airlines.

Threats of Delta Airlines – SWOT analysis of Delta Airlines

  • Competitors: The airline faces much competition from companies like Lufthansa, Air France, Air India, Singapore Airlines, etc.
  • Cheap-cost airlines: The increasing effect of these low-cost carriers has shifted many businesses away from premium airlines such as Cathay Pacific and Delta Airlines. However, these airlines that make quality the basis of their USP might not be able to compete on the price aspect, yet they may struggle to maintain their profits.

You May Also Like:

Overview Template of Delta Airlines SWOT analysis

SWOT analysis of Delta Airlines

Conclusion

After evaluating the SWOT Analysis of Delta Air Lines, it shows that they have forceful strengths which explain its dominance over the industry. 

Some weaknesses and threats they face today also have very tangible solutions that once the company is up and running, can also be easily overcome. Overall, Delta is a big name in the airline industry and isn’t likely to lose its place any time soon.

This is the SWOT analysis of Delta Airlines. Please let us know if you have additional suggestions to add.

[wp-svg-icons icon=”bubbles” wrap=”i”] Let us know What do you think? Did you find the article interesting?

Write about your experiences and thoughts in the comments below.