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DeltaAirlinesCompanyProfile.pdf
COMPANY PROFILE
Delta Air Lines Inc
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Delta Air Lines Inc TABLE OF CONTENTS
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TABLE OF CONTENTS
Company Overview ........................................................................................................3 Key Facts.........................................................................................................................3 Business Description .....................................................................................................4 History .............................................................................................................................5 Key Employees .............................................................................................................54 Key Employee Biographies .........................................................................................55 Major Products & Services ..........................................................................................58 SWOT Analysis .............................................................................................................59 Top Competitors ...........................................................................................................63 Company View ..............................................................................................................64 Locations And Subsidiaries ........................................................................................69
Delta Air Lines Inc Company Overview
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Company Overview
COMPANY OVERVIEW
Delta Air Lines Inc (Delta Air Lines) is a global airline company, which provides scheduled air transportation for passengers and cargo. Its service portfolio includes passenger transport; cargo transport; aircraft management; professional security; training and consulting; aviation solutions; vacation packages; and maintenance, repair and overhaul (MRO). It also has bilateral and multilateral marketing alliances with foreign airlines, and service agreements with multiple domestic regional air carriers and serves passengers primarily in small and medium-sized cities. It also has joint venture agreements with Air France and KLM, Virgin Atlantic, Virgin Australia and Korean Air Lines for transpacific route operations. Delta Air Lines is headquartered in Atlanta, Georgia, the US.
The company reported revenues of (US Dollars) US$47,007 million for the fiscal year ended December 2019 (FY2019), an increase of 5.8% over FY2018. In FY2019, the company’s operating margin was 14.1%, compared to an operating margin of 11.8% in FY2018. In FY2019, the company recorded a net margin of 10.1%, compared to a net margin of 8.9% in FY2018. The company reported revenues of US$1,468 million for the second quarter ended June 2020, a decrease of 82.9% over the previous quarter.
Key Facts
KEY FACTS
Head Office Delta Air Lines Inc 1030 Delta Blvd Atlanta Georgia Atlanta Georgia USA
Phone 1 404 7152600 Fax 1 302 6365454 Web Address www.delta.com Revenue / turnover (USD Mn) 47,007.0 Financial Year End December Employees 91,224 New York Stock Exchange Ticker DAL
Delta Air Lines Inc Business Description
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Business Description
BUSINESS DESCRIPTION
Delta Air Lines Inc (Delta Air Lines) is an air carrier, which provides scheduled air transportation for passengers and cargo globally. Its key hubs include Atlanta, Boston, Los Angeles, Seattle, Detroit, New York-JFK, Minneapolis-St. Paul, New York-LaGuardia, Salt Lake City, London-Heathrow, Amsterdam, Paris-Charles de Gaulle, and Tokyo-Narita. The company is a member of SkyTeam alliance; and also has joint venture agreements with Air France-KLM, Virgin Atlantic, Alitalia, and Virgin Australia.
The company operates its business through two segments: Airline and Refinery. The company serves 300 destinations in 50 countries on six continents. It carries over 200 million passengers annually with more than 15,000 daily flights. In FY2019, the company incurred capital expenditure of US$4,936 million.
Delta Air Lines Inc History
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History
HISTORY
Contracts/Agreements
Year: 2020
In January, the company and Vietnam Airlines signed a two-way codeshare agreement.
Contracts/Agreements
Year: 2020
In January, the company partnered with Sarcos Robotics to explore new employee technology.
Contracts/Agreements
Year: 2020
In January, the company signed a sustainable aviation fuel with Northwest Advanced Bio-Fuels.
Plans/Strategy
Year: 2020
In February, the company announced its plans to invest US$1 billion over ten years to become carbon neutral.
Acquisitions/Mergers/Takeovers
Year: 2020
In February, the company acquired a 1% additional stake in Hanjin Kal.
Contracts/Agreements
Year: 2020
In February, the company and LATAM Airlines Group signed an agreement to launch frequent flyer reciprocity across the carriers’ broad networks.
Financing Agreements
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Year: 2020
In March, the company secured a US$50 million investment from VC Prytek Holdings.
Contracts/Agreements
Year: 2020
In May, the company entered into a joint venture agreement with LATAM Airlines Group to combine trans- American route networks.
Contracts/Agreements
Year: 2020
In July, Delta Cargo entered into a partnership with Unisys and PayCargo to offer a new online payment system.
Contracts/Agreements
Year: 2020
In July, the company partnership with Lysol to further improving how it disinfects airplanes and airport areas amid the coronavirus pandemic.
Contracts/Agreements
Year: 2020
In September, the company and the US Transportation Security Administration (TSA) entered into partnership to rolling out antimicrobial bins in airport security checkpoints at select Delta hubs.
Corporate Changes/Expansions
Year: 2019
In January, the company ordered for additional 15 Airbus A220 aircraft.
New Products/Services
Year: 2019
In January, Delta announced to launch three daily year-round flights to Santa Barbara from Salt Lake City hub.
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Contracts/Agreements
Year: 2019
In April, the company into a joint venture with Korean Air Lines started providing new flights between Minneapolis/St. Paul to Seoul, South Korea to Boston, and Osaka-Kansai and Seattle.
Contracts/Agreements
Year: 2019
In April, the company and Kenya Airways launched new flights between Minneapolis/St. Paul and Seoul, South Korea, and Seattle and Osaka, Japan.
Corporate Changes/Expansions
Year: 2019
In June, the company ordered for five additional Airbus A220 aircraft.
Corporate Awards
Year: 2019
In June, the company was recognized as the Best Airline Staff in North America at the SkyTrax World Airline Awards.
New Products/Services
Year: 2019
In May, the company launched three daily flights from Atlanta to Hilton Head Island.
New Products/Services
Year: 2019
In June, the company started Saturday service from New York-LaGuardia to Hilton Head Island.
New Products/Services
Year: 2019
In June, the company announced to fly A220 fleet in the US from Boston to Dallas to Seattle with 74 daily flights.
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New Products/Services
Year: 2019
In June, the company and Aeromexico launched a new service between Mexico and Twin Cities including including Guadalajara, Leon and Oaxaca.
New Products/Services
Year: 2019
In May, the company launched new services to seven destinations in Europe between Boston and Edinburgh, Boston and Lisbon, and Tampa and Amsterdam.
Corporate Changes/Expansions
Year: 2019
In May, the company announced to operate a new Airbus A330-900neo aircraft on trans-Pacific flights.
Corporate Awards
Year: 2019
In May, the company was recognized as the Best Engine Repair in the The145.com Top Shop Awards.
Corporate Changes/Expansions
Year: 2019
In May, the company launched a new Delta Sky Club at Austin-Bergstrom International Airport.
Regulatory Approval
Year: 2019
In May, the company received approval from the Department of Transportation (DOT) to fly flights between Haneda Airport in Tokyo and five US cities including Atlanta, Seattle, Detroit, Oregon, Portland, and Honolulu.
Plans/Strategy
Year: 2019
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In May, the company announced to launch a new daily service between Los Angeles and Omaha.
Corporate Changes/Expansions
Year: 2019
In February, Delta Cargo entered into alliance with SkyTeam Cargo and rebranded its international products.
Plans/Strategy
Year: 2019
In February, the company announced to offer its customers, who are traveling in the First Class cabin with an option to select their meal days in advance through the pre-select meal program.
Plans/Strategy
Year: 2019
In January, the company and Virgin Atlantic announced to develop 18 self-service bag-drop units at London Heathrow’s Terminal 3.
New Products/Services
Year: 2019
In June, the company started a daily nonstop service from Raleigh-Durham to Pittsburgh and weekend service to New Orleans.
Plans/Strategy
Year: 2019
In May, the company announced to launch two daily services from Boston to Miami.
Corporate Changes/Expansions
Year: 2019
In May, the company announced to provide free Wi-Fi services for customers to browse, email, and message and engage with social media onboard.
New Products/Services
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Year: 2019
In May, Delta SkyMiles launched Reclaim My Status service, providing customers to reclaim status after major life events.
Corporate Changes/Expansions
Year: 2019
In May, the company started operating A330-900neo aircraft.
Corporate Awards
Year: 2019
In April, the company secured the Air Cargo Excellence Award.
Corporate Awards
Year: 2019
In January, the company was recognized as North America's Leading Airline Brand 2019 by World Travel Awards organization.
Contracts/Agreements
Year: 2019
In April, Delta TechOps and Korean Air Maintenance & Engineering entered into a partnership agreement to explore and share maintenance and operational data and reciprocal maintenance activities.
New Products/Services
Year: 2019
In April, the company Delta and Virgin Atlantic launched 18 daily flights from Boston and New York to the UK with Boeing 767-400 aircraft.
Plans/Strategy
Year: 2019
In April, the company announced to start daily flights to Montego Bay and Punta Cana from December 2019.
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New Products/Services
Year: 2019
In June, the company started a daily nonstop service from Raleigh-Durham to Pittsburgh and weekend service to New Orleans.
New Products/Services
Year: 2019
In May, the company announced to launch two daily services from Boston to Miami.
Corporate Awards
Year: 2019
In April, the company was recognized as the Most Preferred North American Airline and received a Flyer Travel Award by Flyertea.com in China.
New Products/Services
Year: 2019
In May, the company started nonstop service between New York-JFK and Mumbai with Boeing 777- 200LR.
Plans/Strategy
Year: 2019
In April, the company announced to start a third daily seasonal flight from John F. Kennedy International Airport in New York to Cancun International Airport in Mexico from January 2020.
Plans/Strategy
Year: 2019
In January, Delta TechOps announced to invest in and grow Maintenance Repair and Overhaul business.
New Products/Services
Year: 2019
In April, the company along with its partners, KLM and Virgin Atlantic launched a new international flight
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from Boston to London-Heathrow.
Contracts/Agreements
Year: 2019
In April, American Express and the company signed an 11-year renewal agreement and extended Delta SkyMiles Credit Cards program through 2029.
Plans/Strategy
Year: 2019
In March, the company announced to operate Airbus A330-300 aircraft to serve more customers to Puerto Rico.
Contracts/Agreements
Year: 2019
In March, the company and Georgia Institute of Technology signed a partnership agreement with C-5 System Program Office and the Air Force Rapid Sustainment Office to share commercial best practices for fleet modernization and reliability processes.
Plans/Strategy
Year: 2019
In February, the company announced to launch additional functionality with enhanced tracking services at DeltaCargo.com.
New Products/Services
Year: 2019
In February, the company started non-stop flights from Los Angeles and Boston Hartsfield-Jackson International Airport.
Corporate Changes/Expansions
Year: 2019
In January, Virgin Atlantic Cargo and Delta Cargo announced to move to the new purpose-built dnata City East, London Heathrow’s cargo facility to expand the operations.
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Plans/Strategy
Year: 2019
In July, the company announced its plan to acquire 10% Stake in Alitalia – Societa Aerea.
Contracts/Agreements
Year: 2019
In August, the company selected Air Transport Activities Pvt Ltd, a division of Avari Group, as its general sales agent in Pakistan.
Contracts/Agreements
Year: 2019
In August, the company and Vietnam Airlines entered into an agreement to expand their joint venture to increase more travelers to the US.
Contracts/Agreements
Year: 2019
In September, the company along with Georgia Tech entered into an agreement with Curiosity Lab at Peachtree Corners to advance autonomous vehicle and infrastructure research.
Corporate Changes/Expansions
Year: 2019
In August, the company introduced three daily flights from Salt Lake City International Airport to Santa Barbara Airport.
Corporate Changes/Expansions
Year: 2019
In September, the company announced to launch a new summer service between Boston and Rome from three of the airline’s hubs to 10 trans-Atlantic destinations.
Corporate Changes/Expansions
Year: 2019
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In October, Delta launched a new daily service flight from Seattle-Tacoma International Airport to Tampa International Airport.
Contracts/Agreements
Year: 2019
In September, the company and LATAM Airlines Group entered into a partnership agreement to enhance traveling services for customers in the Americas.
Contracts/Agreements
Year: 2019
In October, the company entered into a partnership agreement with Airbus to develop and expand Delta TechOps predictive maintenance capabilities.
Corporate Changes/Expansions
Year: 2019
In October, Virgin Atlantic Cargo and Delta Cargo established a export facility at London Heathrow to expand cargo handling capacity to 335,000 sq. ft.
Contracts/Agreements
Year: 2019
In October, the company entered into a partnership agreement with the Atlanta Hawks to open Delta SKY360° Club at State Farm Arena.
Plans/Strategy
Year: 2019
In October, Delta announced to launch a new chat feature on Delta Professional to Delta Edge meetings product and upgrade operational reporting for corporate customers.
New Products/Services
Year: 2019
In October, the company launched a new version of Fly Delta app with new features.
Corporate Changes/Expansions
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Year: 2019
In September, the company relocated from Terminal 1 to the new Satellite Terminal (S1) at Shanghai Pudong International Airport to enhance the convenient connecting experience for customers.
Corporate Changes/Expansions
Year: 2019
In September, American Express and Delta Air Lines announced to relaunch the Delta SkyMiles American Express Card portfolio to increase customer benefits.
Acquisitions/Mergers/Takeovers
Year: 2019
In September, the company acquired 10% stake in Hanjin-KAL to extend joint venture partnership with Korean Air.
Contracts/Agreements
Year: 2019
In September, Delta TechOps signed a five-year Maintenance Services agreement with ORIX Aviation Systems, Ltd. to provide services for CFM56-5B and CFM56-7B aircraft engines.
New Products/Services
Year: 2019
In September, the company launched a new premium economy product, Delta Premium Select for customers traveling between Hartsfield-Jackson Atlanta International Airport and Ezeiza International Airport.
New Products/Services
Year: 2019
In September, the company announced to launch new flights from seven US cities to Tokyo’s Haneda Airport from 2020.
Contracts/Agreements
Year: 2019
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In September, the company entered into a partnership agreement with Georgia Tech, Curiosity Lab at Peachtree Corners to enhance customer experience and employee safety.
New Products/Services
Year: 2019
In August, the company launched new flights to Caribbean destinations with additional service between four US hubs and San Juan, Puerto Rico; Nassau, Bahamas; and Santo Domingo, Dominican Republic.
New Products/Services
Year: 2019
In August, Delta announced to expand customer benefits with Delta SkyBonus by proving earn and redemption on Air France, KLM, Alitalia, Aeromexico and Virgin Atlantic to redeem points.
New Products/Services
Year: 2019
In August, Delta launched a daylight trans-Atlantic flight between London-Heathrow.
Corporate Changes/Expansions
Year: 2019
In August, Delta announced to transfer the full operation of US Tokyo services from Narita to Haneda from March 2020.
New Products/Services
Year: 2019
In August, the company announced to expand corporate benefits such as better seat choice, priority boarding and priority service recovery program to Virgin Atlantic and Aeromexico.
New Products/Services
Year: 2019
In July, the company introduced a new service from New York City to Bogota, Colombia with a Boeing 757-200 aircraft.
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Corporate Changes/Expansions
Year: 2019
In July, the company started operating its new Airbus A330-900neo aircraft from Seattle to Shanghai.
Plans/Strategy
Year: 2019
In July, the company announced to launch Airbus A220 aircraft on new flights between New York's JFK International Airport and Houston's Bush Intercontinental Airport.
New Products/Services
Year: 2019
In July, the company announced a new service from Raleigh to Jacksonville.
Corporate Awards
Year: 2019
In July, the company was recognized with Best Airline Staff Award in North America at the SkyTrax World Airline Awards.
Plans/Strategy
Year: 2019
In July, Delta announced its plans to launch nonstop service between New York-JFK and Houston.
Contracts/Agreements
Year: 2019
In October, the company through Delta Vacations partnered with LivePerson to introduce web messaging service connecting travelers with their own time.
Corporate Changes/Expansions
Year: 2019
In October, the company announced the opening of a new Terminal C at LaGuardia Airport in New York, the US.
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Contracts/Agreements
Year: 2019
In October, the company and Delta Electronics partnered to boost cloud-native virtual routing deployments with network operators.
Contracts/Agreements
Year: 2019
In October, the company partnered with Roadie to provide door-to-door parcel delivery in the U.S.
Corporate Changes/Expansions
Year: 2019
In November, the company opened its new Sky Club lounge at New Orleans Airport.
Contracts/Agreements
Year: 2019
In November, the company and Silver Airways entered into a codeshare agreement to offer customers of both airlines to purchase one ticket with baggage transfer, that includes segments operated by either airline, without booking a separate ticket for each carrier.
Contracts/Agreements
Year: 2019
In November, the company announced to form a joint venture with Virgin Atlantic Airways, KLM Royal Dutch Airlines, and Air France-KLM.
Plans/Strategy
Year: 2019
In December, the company announced its plan to acquire a minority stake in Wheels Up.
New Products/Services
Year: 2019
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In December, the company announced to introduce new direct flight services between Spokane to Atlanta in the US.
New Products/Services
Year: 2018
In March, the company relaunched deltacargo.com with a 24/7 services, complete end-to-end digital booking, acceptance and tracking and easier shipment process.
New Products/Services
Year: 2018
In March, the company introduced communications tools for its customers to check status of their flight on Fly Delta Mobile App.
New Products/Services
Year: 2018
In March, Delta started providing Cleveland Hopkins International Airport with a nonstop flight to its Salt Lake City hub.
Corporate Awards
Year: 2018
In February, the company named as the 2018 Fortune 100 Best Companies to work for.
New Products/Services
Year: 2018
In February, the company and its partner Aeromexico announced to launch nonstop service between Detroit and Leon route, Mexico.
Contracts/Agreements
Year: 2018
In February, the company, Airbus, OneWeb, Sprint, and Airtel signed an agreement to offer passengers seamless in-cabin connectivity experience through satellite technology.
Contracts/Agreements
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Year: 2018
In February, the company’s Delta Vacations signed an agreement with Hilton Hotels & Resorts for a new global hotel distribution.
Corporate Changes/Expansions
Year: 2018
In April, the company launched nonstop flights between the US and Europe including, New York-JFK to Lisbon; Los Angeles to Paris and Amsterdam; Indianapolis to Paris; and Orlando to Amsterdam.
Contracts/Agreements
Year: 2018
In March, the company and Korean Air entered into joint venture to offer travel benefits in the trans- Pacific market.
New Products/Services
Year: 2018
In March, the company announced to introduce new Bluetooth tracking technology offering real-time tracking for unit load devices.
Corporate Changes/Expansions
Year: 2018
In March, the company announced to launch new nonstop Delta service between Chattanooga and New York-LaGuardia.
New Products/Services
Year: 2018
In March, the company started offering basic economy fare product on over 50% of its flights between the US and Mexico.
Corporate Changes/Expansions
Year: 2018
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In March, Delta Cargo and its joint venture, Air France-KLM relocated its cargo warehouse facilities in Seattle.
New Products/Services
Year: 2018
In January, the company started new nonstop service between Pittsburgh and Salt Lake City.
New Products/Services
Year: 2018
In January, the company added 21 nonstop flights for Philadelphia Eagles and the New England customers.
Contracts/Agreements
Year: 2018
In February, the company announced to launch a new service to Austin and Phoenix, expanding travel options for Cincinnati and Northern Kentucky customers.
Contracts/Agreements
Year: 2018
In April, the company and Korean air partnered to start new codeshare flights between Seattle and Seoul- Incheon.
New Products/Services
Year: 2018
In May, the company commenced operations of new nonstop service to Austin using Bombardier CRJ- 700 aircraft with 9 First Class and 60 Economy seats.
Corporate Changes/Expansions
Year: 2018
In May, the company's summer seasonal service expanded to Milan and Venice.
Corporate Awards
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Year: 2018
In February, the company was recognized as one of the Most Innovative Companies Worldwide in 2018, by Fast Company.
Contracts/Agreements
Year: 2018
In May, the company expanded code share partnership with China Eastern.
Contracts/Agreements
Year: 2018
In February, the company partnered with Airbus in mobile-connectivity scheme.
New Products/Services
Year: 2018
In March, the company increased its Trans-Atlantic Flight schedule.
New Products/Services
Year: 2018
In May, the company announced the expansion of its summer flights to Italy.
Plans/Strategy
Year: 2018
In May, the company and Los Angeles World Airports announced to invest US$1.9 billion for construction of Delta Sky Way at LAX project.
New Products/Services
Year: 2018
In June, the company and Korean Air announced to enhance codeshare flights in the US.
Corporate Changes/Expansions
Year: 2018
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In October, the company started operating flights from New York’s JFK to Lisbon, Indianapolis to Paris, Orlando to Amsterdam and Los Angeles to Paris and Amsterdam.
Contracts/Agreements
Year: 2018
In June, the company expanded its code share agreement with GOL Linhas Aereas for four daily non- stop codeshare flights connecting Miami and Orlando with Fortaleza and Brasilia.
New Products/Services
Year: 2018
In December, the company started offering seasonal service from Palm Springs International Airport to Atlanta, Georgia.
Corporate Awards
Year: 2018
In June, the company was named as the Best Domestic Airline for the seventh consecutive year by the TravelAge West.
New Products/Services
Year: 2018
In July, the company's biometric boarding experiment expanded to Detroit.
New Products/Services
Year: 2018
In October, the company started a nonstop flight from Miami to Havana, Cuba.
New Products/Services
Year: 2018
In July, the company added new service from Atlanta to Shanghai.
New Products/Services
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Year: 2018
In July, the company added new service from Chicago and North Carolina.
Plans/Strategy
Year: 2018
In November, the company introduced a nonstop flights between Detroit and San Jose, California.
Contracts/Agreements
Year: 2018
In July, the company selected FlightSafety International to provide training for its Propel Pilot Career Path Program.
New Products/Services
Year: 2018
In August, the company expanded the functionality of its booking portal, Delta product portfolio, including pharma.
New Products/Services
Year: 2018
In July, the company launched performance metrics, for connecting trips to corporate customers.
Corporate Awards
Year: 2018
In July, the company was recognized as the best U.S. airline to care for customers' baggage, from Travel + Leisure magazine.
Contracts/Agreements
Year: 2018
In August, the company entered into a partnership with Seoul-Incheon Airport, to create a leading hub in Northeast Asia.
Contracts/Agreements
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Year: 2018
In August, the company entered into a code share partnership with Kenya Airways to fly flights to and from Kenya Airways' hub.
Plans/Strategy
Year: 2018
In August, the company announced its plans to launch new Caribbean flights from New York.
Corporate Awards
Year: 2018
In August, the company was recognized as a leader for the international business class in Global Traveler's annual Wine.
Plans/Strategy
Year: 2018
In August, the company announced to launch a nonstop flight from Tampa Bay to Amsterdam, Netherlands.
New Products/Services
Year: 2018
In August, the company announced to offer flights services from Worcester Airport to Detroit.
New Products/Services
Year: 2018
In September, the company in partnership with the US Customs and Border Protection (CBP), Hartsfield- Jackson Atlanta International Airport (ATL) and the Transportation Security Administration (TSA) launched the biometric terminal in the Atlanta airport, the US.
Contracts/Agreements
Year: 2018
In October, the company entered into a multi-year contract with Airbus to continue utilizing the Skywise
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open-data platform and related predictive maintenance services.
New Products/Services
Year: 2018
In November, Delta launched 10 more A330s to its fleet.
Plans/Strategy
Year: 2018
In December, the company announced its plans to provide five nonstop daily flight services between Chicago and Boston, the US.
New Products/Services
Year: 2018
In December, the company and Aeromexico entered into a partnership to provide connectivity between Mexico and DetroitSan Luis Potosi and the Motor city.
Contracts/Agreements
Year: 2018
In December, Delta Air Lines and Aerolineas Argentinas signed a codeshare agreement with Buenos Aires Ezeiza for three routes services.
New Products/Services
Year: 2018
In December, the company launched daily flight services from New York to Kingston, Jamaica.
Divestiture
Year: 2018
In December, the company sold its DAL Global Services, LLC to Argenbright Holdings, LLC.
Acquisitions/Mergers/Takeovers
Year: 2017
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In July, Delta Air Lines and China Eastern Airlines Corporation acquired 10% stake in Air France-KLM.
Contracts/Agreements
Year: 2017
In June, the company placed an order 10 more A321s aircrafts.
Contracts/Agreements
Year: 2017
In September, the company entered into purchase agreement with SkyWest to deliver 15 aircrafts.
Corporate Awards
Year: 2017
In January, the company was honored with Business Airline of the Year 2017 award at the U.K.’s Business Travel Awards.
New Products/Services
Year: 2017
In November, the company and its partner Aeromexico launched nonstop service between Seattle and Mexico City.
Contracts/Agreements
Year: 2017
In September, the company entered into a partnership with Amex, to launch new credit card.
Contracts/Agreements
Year: 2017
In January, the company signed an official airline partnership with The National Theatre to offer customers with affordable tickets.
Contracts/Agreements
Year: 2017
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In January, the company collaborated with CLEAR to utilize biometric services to streamline I.D. checks and security process.
New Products/Services
Year: 2017
In February, the company started to offer its Cincinnati customers popular travel options to nonstop destinations.
Contracts/Agreements
Year: 2017
In February, the company signed an agreement with Nashville, and Raleigh-Durham to offer customers nonstop service with first Class seating and business traveler’s schedule.
New Products/Services
Year: 2017
In March, the company started offering Premium Wine selections to customers flying between London Heathrow and the US.
Others
Year: 2017
In March, the company relocated Terminals 5 and 6 Terminals 2 and 3 at Los Angeles International Airport.
New Products/Services
Year: 2017
In April, the company started offering LSTN headphones in Premium Cabins to strengthen customer experiences.
New Products/Services
Year: 2017
In May, Delta signed an extension agreement with Airbus for 30 additional A321ceo powered by CFM56 engines.
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Contracts/Agreements
Year: 2017
In May, Delta signed an extension agreement with Airbus for A321-200 aircraft.
New Products/Services
Year: 2017
In June, Delta launched Delta Comfort+ that provide Sky Priority boarding.
Corporate Changes/Expansions
Year: 2017
In July, Delta opened a manufacturing Pilot Facility in Atlanta, Georgia.
Contracts/Agreements
Year: 2017
In September, the company signed an agreement with Virgin Atlantic to manage joint network between the US and the UK.
Contracts/Agreements
Year: 2017
In December, the company signed a transborder joint venture agreement with WestJet to accelerate travel choices between the US and Canada.
Contracts/Agreements
Year: 2017
In December, the company ordered A321neo ACF (Airbus Cabin Flex configuration) aircraft.
Contracts/Agreements
Year: 2017
In December, the company and Aeromexico extended their travel option from the US and Riviera Maya.
Corporate Awards
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Year: 2016
In September, Delta received 2016 World Travel Awards.
Contracts/Agreements
Year: 2015
Delta and China Eastern Airlines signed an agreement to expand their partnership.
Others
Year: 2015
Delta and American Airlines discontinued their interline ticketing and baggage agreement.
Contracts/Agreements
Year: 2013
Delta and GOL Linhas Aereas Inteligentes partnered to implement GOL codeshare on Delta's flight from Brasilia to Atlanta. GOL will sell Delta's international tickets through its sales channels which include www.voegol.com, Voe GOL stores, call centers and travel agencies.
Contracts/Agreements
Year: 2013
Delta and Starwood Hotels and Resorts Worldwide announced a new partnership that offers exclusive new benefits to Delta SkyMiles Medallion members and Starwood Preferred Guest elite members.
New Products/Services
Year: 2013
Delta Air Lines introduced three updated Boeing 757 aircraft on the transcontinental route between New York's John F. Kennedy International Airport and Los Angeles International Airport.
Contracts/Agreements
Year: 2012
The company's wholly-owned subsidiary, Monroe Energy, reached an agreement with Phillips 66 to acquire the Trainer refinery complex south of Philadelphia.
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Contracts/Agreements
Year: 2012
The company announced an exclusive marketing agreement with OnAsset Intelligence enabling Delta Cargo customers to view GPS location information on deltacargo.com.
Contracts/Agreements
Year: 2012
The company expanded codeshare agreements with China Eastern and China Southern airlines, which would provide more options for customers traveling between the US and China.
Contracts/Agreements
Year: 2011
Delta and GOL Linhas Aereas Inteligentes announced an agreement for a long-term exclusive commercial alliance to expand cooperation to leverage each other's strengths and further link Delta's expansive network with one of Brazil's largest and most successful airlines.
Contracts/Agreements
Year: 2011
Delta started a codeshare service with GOL, adding 15 new destinations to its South American network.
Contracts/Agreements
Year: 2009
The company and Air Nigeria signed a memorandum of understanding to explore areas of commercial cooperation that will expand travel options between North America and Nigeria.
Contracts/Agreements
Year: 2009
The company reached a definitive agreement with US Airways to exchange certain flying rights and airport facilities at New York's LaGuardia and Washington's Reagan National airports, allowing Delta to expand its New York customer service and convenience by creating a domestic hub at LaGuardia Airport.
Contracts/Agreements
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Year: 2009
The company and Midwest Airlines announced a multi-faceted alliance agreement that includes reciprocity between the two airlines' frequent flyer programs, new joint marketing efforts and expanded access to airport lounges throughout North America.
Contracts/Agreements
Year: 2009
Delta TechOps signed a component services contract with First Air to provide support for First Air's Boeing 767-200SF freighter for three years.
Contracts/Agreements
Year: 2009
The company partnered with TSA to launch paperless check-in for domestic travel on nonstop Delta, Northwest and Delta Connection flights departing from Hartsfield-Jackson Atlanta International Airport.
Contracts/Agreements
Year: 2008
Delta partnered with the Transportation Security Administration to launch paperless mobile check-in for domestic travel on Delta and Delta Connection flights departing from Delta's main terminal at LaGuardia Airport.
Contracts/Agreements
Year: 2008
Delta TechOps signed contract extensions with three customers including Air Berlin, ABX Air and GOL Airlines, to continue performing high-skill engine, component and airframe work.
Contracts/Agreements
Year: 2008
Delta and Hawaiian Airlines announced a new partnership providing SkyMiles and HawaiianMiles' members more mileage-earning and award travel opportunities on the two carriers.
Contracts/Agreements
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Year: 2007
Pratt & Whitney and Delta TechOps entered into an agreement, under which Pratt & Whitney will provide engine materials and services to Delta and its MRO customers.
Contracts/Agreements
Year: 2007
Delta and Mesa Air Group signed an agreement on a 12-year deal to support Mesa's CF34 engine program for US$300 million.
Contracts/Agreements
Year: 2007
CFM International, Chromalloy Gas Turbine Corporate and Evergreen Aviation Technologies (EGAT) entered into memorandum of understandings with the company for the provision of similar services to Delta and its MRO customers.
Contracts/Agreements
Year: 2007
Delta signed a partnership agreement with Hilton Hotels, to create greater value for the two companies' shared customers.
Contracts/Agreements
Year: 2007
Delta and KLM Royal Dutch Airlines entered a code sharing beyond their hubs. The two carriers provide customers with service to destinations in the US, Latin America, Europe, Africa and the Middle East from their hubs in Amsterdam, Atlanta and JFK.
Contracts/Agreements
Year: 2017
In December, Delta Air Lines and Air France-KLM partnered with Jet Airways and launched two new flights directly connecting Chennai, India, with Paris, Europe, and Bengaluru, India, with Amsterdam, the Netherlands.
New Products/Services
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Year: 2017
In April, Delta Air Lines and Virgin Australia expanded their trans-Pacific network with the launch of Virgin Australia’s direct service between Los Angeles and Melbourne.
Contracts/Agreements
Year: 2017
In April, the company entered into an agreement with Air France for codeshare service to South East Asia.
Contracts/Agreements
Year: 2017
In March, Delta entered into partnership with Alessi for new collection of service products and tableware.
Contracts/Agreements
Year: 2016
The company expanded code share partnership with Seaborne Airlines, to expand travel options to the US, Caribbean.
Corporate Changes/Expansions
Year: 2016
The company announced the opening of Delta Sky Club at Atlanta Concourse B.
Contracts/Agreements
Year: 2016
The company entered into a partnership with the Port Authority of New York and New Jersey, to replace Terminals C and D at New York's LaGuardia Airport with a state-of-the-art facility.
Corporate Changes/Expansions
Year: 2016
The company opened a City Ticket Office in Havana, Cuba, Caribbean.
Others
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Year: 2016
The company's Premium Sales and Service Customer Engagement Centers was recognized for customer satisfaction excellence, by the J.D. Power Certified Contact Center Program.
Contracts/Agreements
Year: 2016
The company and Virgin Atlantic entered into a code share agreement with Jet Airways.
Regulatory Approval
Year: 2015
Delta and Grupo Aeromexico filed an application with the US Department of Transportation seeking antitrust immunity for a new joint venture on flights between the US and Mexico.
Regulatory Approval
Year: 2015
Delta filed for regulatory approval to move its Atlanta-Brasilia service to new non-stop flights between Orlando and Brasilia.
New Products/Services
Year: 2015
The company launched new daily flight to link Salt Lake City International Airport to Amsterdam's Schiphol Airport. The company increased travel options for customers between the Czech Republic and the US.
Corporate Changes/Expansions
Year: 2015
The company restarted services to Big Apple from Rome's Leonardo da Vinci-Fiumicino and Venice's Marco Polo airports.
Corporate Changes/Expansions
Year: 2015
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The company restarted nonstop flights from Paris CDG to both Philadelphia International and Pittsburgh International airports.
Corporate Changes/Expansions
Year: 2015
Delta announced that it will resume daily service between Tokyo-Narita and Kansai International Airport in Osaka beginning next year as an extended leg of the flight between New York-JFK and Narita.
Contracts/Agreements
Year: 2015
Delta and Virgin Atlantic Airways expanded their trans-Atlantic partnership with the introduction of six new daily services.
Contracts/Agreements
Year: 2015
Delta partnered with Ant Financial Services Group and UATP to make it easier for Chinese consumers to purchase airline tickets via delta.com.
Regulatory Approval
Year: 2015
Grupo Aeromexico and Delta filed an application with the Mexican Comision Federal de Competencia Economica (Federal Economic Competition Commission) for a Joint Cooperation Agreement on flights between the US and Mexico. Delta filed for regulatory approval to offer new non-stop flights between Orlando, Florida, and Sao Paulo, Brazil, with four weekly flights.
Contracts/Agreements
Year: 2015
Delta unveiled a three-year, US$229-million refurbishment of Terminal 5 at Los Angeles International Airport.
Contracts/Agreements
Year: 2015
Delta Air Lines and Banco de Chile launched the ‘Travel Delta’ partnership, a program that encourages
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Banco de Chile and Banco Edwards Citi Travel Club cardholders to fly with Delta.
Regulatory Approval
Year: 2015
Delta filed for regulatory approval to increase its new nonstop service between Orlando and Sao Paulo from four times per week to daily.
Contracts/Agreements
Year: 2015
Delta signed an agreement to acquire additional 32% in airline holding company Grupo Aeromexico S.A.B. de C.V to strengthen the airlines' partnership, and provide more travel options for customers in the US and Mexico.
New Products/Services
Year: 2014
Delta added new daily nonstop service to Seattle-Tacoma International Airport from Fairbanks International Airport and Vancouver International Airport, summer seasonal flights between Shannon and New York-JFK, summer seasonal flights between Athens and New York-JFK.
New Products/Services
Year: 2014
The company launched its daily nonstop service from Los Angeles International Airport to General Mariano Escobedo International Airport in Monterrey.
New Products/Services
Year: 2014
The company launched a new daily nonstop service from Seattle-Tacoma International Airport to London Heathrow Airport.
New Products/Services
Year: 2014
The company launched its new nonstop routes from JFK-New York and Atlanta international airports to Sir Grantley Adams International Airport in Barbados. Subsequently, Delta introduced a new Saturday
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service from New York's JFK airport to Saint Lucia island in the Caribbean.
Corporate Changes/Expansions
Year: 2014
The company strengthened its leading position in the New York market by offering new year-round daily service from John F. Kennedy International Airport to Zurich Airport and expanded service to Rome's Leonardo Da Vinci International Airport. Also, the company resumed its summer seasonal flights between Prague and New York-JFK and also flights between Copenhagen and New York-JFK.
Corporate Changes/Expansions
Year: 2014
Delta resumed its nonstop seasonal flights between Istanbul and New York-JFK. The company resumed its summer seasonal flights between Tuscany and the US, marking the only non-stop service between these cities. Delta resumed its nonstop summer seasonal flights between Malaga and New York.
Corporate Changes/Expansions
Year: 2014
The company opened Delta Arrivals Lounge, at the arrivals hall of London Heathrow Terminal 3.
Corporate Changes/Expansions
Year: 2014
Delta expanded at Los Angeles International Airport with new daily nonstop service to Austin, Texas, and Boise, Idaho, along with new daily nonstop service to San Salvador, El Salvador. Delta introduced the expanded services from Minneapolis/St. Paul, Atlanta, and Salt Lake City airports to Los Cabos and from Atlanta and Salt Lake City to Puerto Vallarta. The company introduced the expanded seasonal services from 13 US to Cancun, in Mexico.
Corporate Changes/Expansions
Year: 2014
The company announced a significant upgrade to its service between Brasilia and Atlanta with the introduction of full flat-bed seats in the BusinessElite cabin.
Contracts/Agreements
Year: 2014
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The company signed an agreement with Airbus to purchase 15 A321 aircraft for delivery beginning in 2018. Subsequently, the company resumed its summer seasonal flights between Stockholm and New York-JFK and also launched a new service from Seattle to Seoul.
Contracts/Agreements
Year: 2014
Monroe Energy, a subsidiary of Delta, entered into a five-year agreement with Bridger, a midstream energy company, to supply 65,000 barrels of domestic crude oil daily to its refinery in Trainer. The company reached an agreement on an enhanced partnership with SkyTeam partner Kenya Airways to offer convenient connecting flights between Monrovia, Liberia, and Accra, Ghana.
Contracts/Agreements
Year: 2014
Delta reached a multi-year lease agreement with the Narita International Airport Corporation (NAA) for a 13,000 square meter hangar facility to reinforce aircraft maintenance work for Delta's transoceanic fleet at its Narita hub operation.
New Products/Services
Year: 2013
Delta launched eBoarding Pass service to passengers travelling from Mexico to replace the traditional paper boarding pass.
New Products/Services
Year: 2013
Delta launched new nonstop service from Seattle to Shanghai. Moreover, Delta was awarded permission by the US Department of Transportation to increase its service to Brazil with an additional daily nonstop flight between Atlanta and Sao Paulo.
New Products/Services
Year: 2013
The company started a new daily nonstop service to Seattle-Tacoma International Airport from San Francisco International Airport as well as increased service from Las Vegas' McCarran International Airport and Los Angeles International Airport.
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Corporate Changes/Expansions
Year: 2013
Delta Lines announced expanded service from Los Angeles to three popular destinations in Mexico. Delta Cargo opened a new 3,000 square-foot refrigerated storage unit at Detroit-Wayne County International Airport that will offer in-transit cooling and specialized handling for temperature-sensitive products.
Contracts/Agreements
Year: 2013
Delta partnered with Architectural Digest to develop the airline's first-ever outdoor airport terraces, called The Sky Deck at Delta Sky Club in Concourse F of Atlanta's new international terminal and in New York's redeveloped Terminal 4 at John F.
Contracts/Agreements
Year: 2013
Delta partnered with Union Square Hospitality Group (USHG) to elevate the dining and inflight experience.
Contracts/Agreements
Year: 2013
Delta TechOps signed a new Time-and-Materials (T&M) agreement with Italian air carrier NEOS to expand engine MRO services.
Contracts/Agreements
Year: 2013
Virgin Atlantic Cargo and Delta Cargo entered a multi-year cargo handling agreement in which Delta Cargo will provide cargo handling for Virgin Atlantic at New York's John F. Kennedy International Airport and Boston's Logan International Airport.
Contracts/Agreements
Year: 2013
Delta announced a new partnership with Prince Hotels & Resorts, which enables SkyMiles members to earn 200-500 miles per stay at Prince Hotels & Resorts in and outside of Japan.
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Contracts/Agreements
Year: 2013
The company and Virgin Atlantic Airways Ltd. announced a new joint venture flight schedule d.
Acquisitions/Mergers/Takeovers
Year: 2013
Delta acquired 49% stake in Virgin Atlantic. Delta and Virgin Atlantic detailed a codeshare agreement across 108 routes that offer customers connections to 66 destinations across North America and the UK.
New Products/Services
Year: 2012
Delta began flights to 11 new cities from LaGuardia as it embarks on the largest expansion of the New York City airport in more than 40 years.
Corporate Changes/Expansions
Year: 2012
Delta announced new and expanded service to 10 popular destinations in the Caribbean, Bermuda and Florida from LaGuardia Airport and John F. Kennedy International Airport, continuing its historic expansion in New York.
Corporate Changes/Expansions
Year: 2012
Grupo Aeromexico and Delta established jointly operated aircraft MRO center at the Intercontinental Airport in Queretaro, Mexico.
Contracts/Agreements
Year: 2012
Delta and WestJet announced a codesharing agreement on flights within the US and Canada, further expanding the partnership between the two carriers.
Contracts/Agreements
Year: 2012
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Delta TechOps signed a multi-year exclusive agreement with Atlas Air to provide maintenance and support services for three of the company's Boeing 767-300ER passenger aircraft.
Contracts/Agreements
Year: 2012
Delta reached an agreement with Virgin Atlantic Airways for a new joint venture that would create an expanded trans-Atlantic network and enhance competition between the UK and North America.
Business / Operations Closure
Year: 2012
Comair, a wholly-owned subsidiary of Delta ceased its operations.
Acquisitions/Mergers/Takeovers
Year: 2012
Delta acquired a stake in Grupo Aeromexico, a national Mexican airline.
Regulatory Approval
Year: 2011
Delta and Virgin Australia Airlines received a grant of antitrust immunity from the US Department of Transportation, which will allow the airlines to implement their joint venture, expanding their reach between the US, Australia and the South Pacific region.
New Products/Services
Year: 2011
Delta became the first airline in the world to provide in-flight Internet service onboard its regional aircraft with the launch flight of a Wi-Fi-equipped Bombardier CRJ700 operated by Delta Connection carrier Atlantic Southeast Airlines.
Corporate Changes/Expansions
Year: 2011
Delta introduced a renovated Sky Club in Minneapolis-St. Paul, the first of four remodeled Sky Clubs, including lounges in Atlanta, New York - LaGuardia and Philadelphia. The refurbishments are part of
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Delta's US$2 billion investment in its products.
Corporate Changes/Expansions
Year: 2011
Delta expanded codesharing with the Virgin Blue Airlines Group, adding five new destinations in Australia and New Zealand to Delta's network.
Contracts/Agreements
Year: 2011
WestJet and Delta started an interline agreement, which allowed WestJet and Delta customers to purchase connecting flights on one ticket, receive boarding passes for all segments at their first check-in, and tag bags through to their final destination.
Contracts/Agreements
Year: 2011
Delta TechOps signed a five-year, exclusive agreement with Air Canada to provide repair and overhaul services to the airline's entire fleet of Pratt & Whitney (PW) 4060 engines.
Contracts/Agreements
Year: 2011
Delta TechOps entered an exclusive MRO partnership with GOL Linhas Aereas Inteligentes.
Contracts/Agreements
Year: 2011
The company started a new codesharing agreement with China Eastern and Aerolineas Argentinas.
Contracts/Agreements
Year: 2011
Delta TechOps signed a five-year component maintenance and exchange agreement with Skymark Airlines to provide advance exchange power-by-the-hour (PBTH) services to Skymark's fleet of 25 CFM56-7B powered Boeing 737NG aircraft. Delta TechOps finalized an exclusive five-year engine maintenance contract with Canadian charter operator, CanJet Airlines.
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Regulatory Approval
Year: 2010
The US Department of Transportation and the European Commission granted Delta's request to operate new daily, year-round flights between London's Heathrow and Boston and Miami international airports.
Regulatory Approval
Year: 2010
Delta TechOps received FAA's approval to implement Process Compensated Resonance Testing (PCRT), a method of non-destructive testing that identifies over-temperature conditions in aircraft engines.
Regulatory Approval
Year: 2010
Delta filed applications with the European Commission and the US DoT requesting permission to operate twice-daily year-round service between London's Heathrow Airport and Boston, and daily year-round service between Heathrow and Miami.
Regulatory Approval
Year: 2010
Delta and GOL filed documentation with the governments of the US and Brazil, requesting authorization to implement a codeshare agreement. The agreement would allow Delta and GOL customers improved connecting flight access beyond the carriers' respective hubs, including Atlanta, New York-JFK, Rio de Janeiro and Sao Paulo.
Corporate Changes/Expansions
Year: 2010
Delta opened its first Delta Sky Club at Indianapolis International Airport, completing the second of four airport lounge openings scheduled this year as part of the airline's ongoing US$2 billion investment in improved airport facilities and global products and service.
Corporate Changes/Expansions
Year: 2010
Delta expanded its First Class cabin on more than 60% of its mainline domestic fleet (approximately 350
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aircraft) as it responds to business customers' requests for more premium cabin seating.
Corporate Changes/Expansions
Year: 2010
Delta announced that its wholly owned private jet subsidiary, Delta Air Elite will operate under the new brand of Delta Private Jets.
Corporate Changes/Expansions
Year: 2010
The company completed the integration of the Northwest Airlines reservation system, including the transition of all Northwest flights into the Delta schedule; migration of Northwest passenger reservations into the Delta system; and retirement of nwa.com.
Contracts/Agreements
Year: 2010
Hawaiian Airlines and Delta announced the signing of a new code-sharing agreement that would offer Delta's customers access to connecting flights within the Hawaiian Islands for the first time.
Contracts/Agreements
Year: 2010
Delta TechOps signed a long-term strategic contract with Global Avia Logistics to support the overhaul and repair services of Nordwind Airline's Pratt & Whitney 2000 Series engines and GTCP 331-200 auxiliary power units.
Contracts/Agreements
Year: 2010
Delta and US Airways announced an agreement with AirTran Airways, Spirit Airlines, WestJet and JetBlue Airways, for transfer of takeoff and landing rights at New York's LaGuardia, Washington's Reagan National Airports.
Contracts/Agreements
Year: 2010
Delta TechOps signed a three-year contract with China Eastern Airlines to provide MRO services to
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various aircraft engine types. Alitalia, one of the Italy's leading airlines, joined the Air France-KLM Group and Delta as a member of the airline industry's leading trans-Atlantic joint venture.
Contracts/Agreements
Year: 2010
Delta extended its partnership with the Atlanta Braves (Major League Baseball's winningest franchise), and will continue to serve as the team's official airline.
Acquisitions/Mergers/Takeovers
Year: 2010
Delta AirElite acquired Segrave Aviation.
Plans/Strategy
Year: 2009
Delta and the Virgin Blue Airlines Group announced that they plan to seek regulatory approval to form a joint venture that will expand both carriers' reach between the US and Australia and the South Pacific.
Corporate Changes/Expansions
Year: 2009
The company announced a name change for the airline's more than 50 airport lounges worldwide as part of the merger with Northwest Airlines. The new moniker, Delta Sky Club, replaced the Delta Crown Room Club and Northwest Airlines WorldClubs names.
Corporate Changes/Expansions
Year: 2009
Delta, Alaska Airlines and Horizon Air expanded their codeshare access for customers at Portland International Airport to include more than 70 daily departures to 32 nonstop destinations.
Contracts/Agreements
Year: 2009
Delta's maintenance segment, Delta TechOps signed an exclusive eight-year contract extension with Copenhagen-based Star Air, to provide engine overhaul and repair services for the 22 CF6-80A2/C2 engines that power Star Air's fleet of 11 Boeing 767-200SF cargo aircraft.
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Contracts/Agreements
Year: 2009
Delta TechOps signed a four-year contract with Canadian charter airline, CanJet to provide support for comprehensive component and inventory logistics for CanJet's Boeing 737-800 fleet.
Contracts/Agreements
Year: 2009
Delta partnered with the Transportation Security Administration (TSA) to launch paperless check-in for domestic travel on nonstop Delta, Northwest and Delta Connection flights departing from Concourses A, B and C at Memphis International Airport.
Contracts/Agreements
Year: 2009
Delta TechOps signed a three-year maintenance contract with Taiwan-based EVA Airways and its subsidiary, UNI Air; and a one-year contract with Latin American leading airline, LAN Airlines to install winglets and provide airframe maintenance services on some of LAN's Boeing 767 fleet.
Contracts/Agreements
Year: 2009
Air France KLM Group and Delta announced a new long-term joint venture whereby the partners will jointly operate their trans-Atlantic business by coordinating operations and sharing revenues and costs of their trans-Atlantic route network.
Contracts/Agreements
Year: 2009
Delta TechOps entered into an agreement with Honolulu-based Hawaiian Airlines. The long-term agreement, valued at as much as US$500 million, included Delta TechOps' complete fleet support for Hawaiian's new Airbus 330-200 fleet and an extension of an existing support agreement for Hawaiian's Boeing 767 fleet.
Contracts/Agreements
Year: 2009
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Delta TechOps expanded its maintenance agreement with Tulsa-based Omni Air International, to include component and inventory support for the charter airline's new Boeing 767 fleet.
Regulatory Approval
Year: 2008
The company received preliminary approval from the US Department of Transportation (DOT) to begin daily nonstop flights between New York's John F. Kennedy International Airport and Bogota, Colombia.
New Products/Services
Year: 2008
Delta launched Spanish-language kiosks for growing international customer base.
Corporate Changes/Expansions
Year: 2008
The company's wholly owned subsidiary, Delta AirElite added another Learjet 45 to its fleet to serve both fleet members, and charter customers.
Corporate Changes/Expansions
Year: 2008
Delta inaugurated nine international flights, marking a significant step in its unprecedented global expansion.
Contracts/Agreements
Year: 2008
Delta, Grecotel Hotels & Resorts and Classical Hotels, announced a new partnership that enables SkyMiles members to earn 500 miles per stay.
Contracts/Agreements
Year: 2008
WheelTug and Delta entered into an agreement in which Delta assisted WheelTug in developing a new system that had the potential to enable pilots to back away from gates without a tow tug and taxi, to and from, takeoff and landing points without using jet engines.
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Contracts/Agreements
Year: 2008
Delta and Air France teamed up to leverage the new EU-US open skies agreement starting with three new trans-Atlantic routes connecting London-Heathrow to Los Angeles International Airport, Atlanta Hartsfield-Jackson International Airport and New York's JFK International Airport.
Contracts/Agreements
Year: 2008
Delta TechOps entered into a five-year agreement for CFM56-3 engine repair and overhaul work with Asiana Airlines.
Contracts/Agreements
Year: 2008
Delta and Alaska Air Group announced an agreement to offer benefits to their customers, including supporting the launch of new Delta long-haul trans-Pacific and Latin American routes from the West Coast; expand connecting opportunities to and from Alaska Airlines and Horizon Air hubs and focus cities; and enhance worldwide frequent flier and lounge reciprocity agreements between Delta and Alaska.
Contracts/Agreements
Year: 2008
Delta and American Express announced a multiyear extension of their exclusive co-brand credit card partnerships. Subsequently, the company signed a memorandum of understanding with the Air Line Pilots Association and the Federal Aviation Administration (FAA) to reinstate its Aviation Safety Action Program covering pre-merger Delta pilots. The revised program mirrors an existing Northwest Airlines pilot ASAP program.
Acquisitions/Mergers/Takeovers
Year: 2008
Delta and Northwest Airlines merged creating a global airline with service to worldwide major travel destinations.
Contracts/Agreements
Year: 2007
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The company partnered with HMSHost, to transform Terminal 2 at its JFK hub in New York with an array of new upscale dining choices.
Contracts/Agreements
Year: 2007
Air France and Delta Air Lines signed a joint venture agreement to share revenues and costs on certain trans-Atlantic routes.
Contracts/Agreements
Year: 2007
Delta formed a new partnership with Budget Rent A Car, which provides SkyMiles members with new mileage-earning opportunities throughout their global travel experience.
New Products/Services
Year: 2006
Delta launched new nonstop flights between New York's John F Kennedy (JFK) International Airport, Mumbai, India and Accra, Ghana.
Corporate Changes/Expansions
Year: 2006
Delta added 16 new routes from its West Coast gateway at Los Angeles International Airport to accommodate soaring demand in one of the country's largest travel markets for Hispanic customers. The expansion included new nonstop flights to nine Mexican destinations, two Central American destinations and corresponding connecting service to five destinations in the US where many Hispanic customers prefer to travel.
Divestiture
Year: 2005
Delta sold its wholly owned subsidiary Atlantic Southeast Airlines to SkyWest Airlines.
Contracts/Agreements
Year: 2005
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The company signed a long term maintenance agreements with Miami Air International and Star Air.
Contracts/Agreements
Year: 2004
The company signed a five-year agreement to provide engine support services for Air Berlin's Boeing 737-800 CFM56-7 engines.
Contracts/Agreements
Year: 2003
Delta, Northwest Airlines and American Airlines entered into an agreement to sell their equity interests in Worldspan.
Corporate Changes/Expansions
Year: 2002
Delta added Chautauqua Airlines to the Delta Connection system.
Contracts/Agreements
Year: 2002
A significant marketing agreement was forged with Continental and Northwest Airlines, and antitrust immunity was granted for international SkyTeam services with Air France, Alitalia, CSA Czech Airlines and Korean Airlines.
Contracts/Agreements
Year: 2001
The company’s technical operations business signed two maintenance contracts with the Boeing and World Airways, under which the company will provide the US government with primary maintenance support on its Boeing 737NG fleet; and World Airways provides maintenance for eight MD11 aircraft.
Contracts/Agreements
Year: 2000
Delta formed its own international alliance collaborating with Air France, AeroMexico and Korean Airlines. The alliance was named SkyTeam. Delta subsequently ended code-sharing deals with SAirGroup (formerly Swissair), Sabena, and Austrian Airlines.
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Acquisitions/Mergers/Takeovers
Year: 2000
Delta acquired two regional carriers, Atlantic Southeast and Comair.
Contracts/Agreements
Year: 1997
The company ended an unprofitable code-sharing agreement with Singapore Airlines. Delta also signed a marketing accord with United Airlines under which the two companies combined their frequent-flier programs.
Corporate Changes/Expansions
Year: 1995
The airline decided to discontinue unprofitable international routes and instead introduced a no-frills flight service called Delta Express.
Asset Purchase
Year: 1992
The company bought planes and Canadian routes from the Eastern Company.
Contracts/Agreements
Year: 1991
Delta formed an alliance with TWA and Northwest Airlines to create Worldspan, a computer reservation service.
Acquisitions/Mergers/Takeovers
Year: 1991
Delta purchased substantially all of Pan Am's transatlantic routes and the Pan Am Shuttle, making this the largest acquisition of flights in airline history.
Acquisitions/Mergers/Takeovers
Year: 1987
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The company acquired Western Airlines.
Acquisitions/Mergers/Takeovers
Year: 1953
Chicago and Southern Air Lines (C&S) became part of Delta through a merger. Delta launched its first continental flight service and bought the Northeast Airlines. The company started flights to the UK.
New Products/Services
Year: 1929
Delta began flying passengers from Dallas to Jackson, Mississippi.
Corporate Changes/Expansions
Year: 1928
The company was bought by CE Woolman and two of his partners and was renamed to Delta Air Service.
Corporate Changes/Expansions
Year: 1925
The company was moved to Monroe, Louisiana.
Incorporation/Establishment
Year: 1924
Delta Air Lines, Inc. (Delta or 'the company') was founded as Huff Daland Dusters as the world's first crop-dusting service in Macon, Georgia.
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Key Employees
KEY EMPLOYEES
Name Job Title Board Francis S. Blake Chairman Non Executive Board Edward H. Bastian Chief Executive Officer, Director Executive Board Gil West Chief Operating Officer, Senior Executive
Vice President Senior Management
David G. Dewalt Director Non Executive Board William H. Easter Director Non Executive Board Jeanne P. Jackson Director Non Executive Board Ashton B. Carter Director Non Executive Board George N. Mattson Director Non Executive Board Michael Huerta Director Non Executive Board Sergio A.L. Rial Director Non Executive Board Kathy N. Waller Director Non Executive Board Paul A. Jacobson Chief Financial Officer, Executive Vice
President Senior Management
Christopher A. Hazleton Director Non Executive Board Joanne Smith Executive Vice President, Chief People
Officer Senior Management
David S. Taylor Director Non Executive Board Peter W. Carter Chief Legal Officer, Executive Vice
President, Corporate Secretary Senior Management
Bill Lentsch Chief Customer Experience Officer Senior Management Gary Chase Chief Strategy Officer, Senior Vice
President Senior Management
Glen W. Hauenstein President Senior Management Steven M. Sear Executive Vice President-Global Sales ,
President-International Senior Management
Tim Mapes Chief-Marketing and Communication Officer, Senior Vice President
Senior Management
Rahul Samant Chief Information Officer, Executive Vice President
Senior Management
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Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
Francis S. Blake
Board:Non Executive Board Job Title:Chairman Since:2016 Age:70
Mr. Francis S. Blake has been the Chairman of the company since 2016. Prior to this, he served as the Chairman of Home Depot from 2007 to 2015 and the Chief Executive Officer from 2007 to 2014. Mr. Blake also served as the Vice Chairman, an Executive Vice President of Business Development and Corporate Operations of Home Depot. Mr. Blake previously served in a various executive positions at General Electric, including the Senior Vice President of Corporate Business Development. Currently, he also serves as Director of Procter & Gamble Company and Macy’s, Inc. He is also a member of Board of Georgia Aquarium, Grady Memorial Hospital Corporation and Agnes Scott College.
Edward H. Bastian
Board:Executive Board Job Title:Chief Executive Officer, Director Since:2016 Age:62
Mr. Edward H. Bastian has been the Chief Executive Officer and a Director of the company since 2016. Prior to this, he served as the President of the company from 2007 to 2016. Mr. Bastian also served as the Chief Financial Officer, Senior Vice President, Vice President of Finance and Controller of the company. He also served as the Senior Vice President and Chief Financial Officer of Acuity Brands.
Gil West
Board:Senior Management Job Title:Chief Operating Officer, Senior Executive Vice President Age:59
Mr. Gil West has been the Chief Operating Officer and Senior Executive Vice President of Delta since February 2016. Prior to this, he served as an Executive Vice President and the Chief Operating Officer of Delta from March 2014 to February 2016; Senior Vice President - Airport Customer Service and Technical Operations of Delta from February 2012 to February 2014; and Senior Vice President of Airport Customer Service of Delta from March 2008 to January 2012. He also served as the Chief Executive Officer and President of Laidlaw Transit Services from 2006 to 2007.
Paul A. Jacobson
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Board:Senior Management Job Title:Chief Financial Officer, Executive Vice President Since:2013 Age:48
Mr. Paul A. Jacobson has been an Executive Vice President and the Chief Financial Officer of the company since 2013. Prior to this, he served as the Senior Vice President, Treasurer and Vice President of the company.
Joanne Smith
Board:Senior Management Job Title:Executive Vice President, Chief People Officer Since:2014 Age:61
Ms. Joanne Smith has been an Executive Vice President and the Chief People Officer of the company since 2014. Previously, she served as the Senior Vice President, In-Flight Service of the company. Ms. Smith also served as the Vice President of Marketing and Customer Service at Song, the company’s former low cost carrier.
Peter W. Carter
Board:Senior Management Job Title:Chief Legal Officer, Executive Vice President, Corporate Secretary Since:2015 Age:56
Mr. Peter W. Carter has been an Executive Vice President and the Chief Legal Officer and Corporate Secretary of the company since 2015. Earlier, he served as a Partner for Dorsey & Whitney in Minneapolis.
Gary Chase
Board:Senior Management Job Title:Chief Strategy Officer, Senior Vice President
Mr. Gary Chase is the Senior Vice President and Chief Strategy Officer of the company. Prior to this, he served as the company’s Senior Vice President of Financial Planning and Analysis, Investor Relations, and Corporate Planning. Earlier, he served as the Managing Director in equity research at Barclays Capital and Lehman Brothers.
Glen W. Hauenstein
Board:Senior Management
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Job Title:President Since:2016 Age:59
Mr. Glen W. Hauenstein has been the President of the company since 2016. Prior to this, he served as an Executive Vice President and the Chief Revenue Officer of the company from 2013 to 2016. Earlier, he worked as an Executive Vice President of Network Planning and Revenue Management, and Chief of Network and Revenue Management of the company. He also served as the Vice General Director, Chief Commercial Officer and Chief Operating Officer of Alitalia; Senior Vice President of Network of Continental Airlines; Vice President Scheduling of Continental Airlines; and Senior Vice President and Vice President of Scheduling at Continental Airlines.
Tim Mapes
Board:Senior Management Job Title:Chief-Marketing and Communication Officer, Senior Vice President Since:2019
Mr. Tim Mapes has been the Senior Vice President and Chief Marketing and Communications Officer of the company since May 2019. He rejoined the company as the Chief Communication Officer in 2016. Prior to this, he served as the Vice President and Chief Marketing Officer for Song. He also served in several leadership positions at Omnicom’s BBDO, and Bozell, Jacobs, Kenyon & Eckhardt.
Rahul Samant
Board:Senior Management Job Title:Chief Information Officer, Executive Vice President Since:2017 Age:53
Mr. Rahul Samant has been an Executive Vice President of the company since 2017 and the Chief Information Officer since 2016. Prior to this, he served as the Senior Vice President of the company. Earlier, he served for American International Group, Inc (AGI) as Senior Vice President and Chief Digital Officer; and Global Head, Application Development and Management of AGI. Prior to joining AIG, Mr. Samant held various roles at Bank of America for 20 years.
Delta Air Lines Inc Major Products & Services
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Major Products & Services
MAJOR PRODUCTS & SERVICES
Delta Air Lines provides scheduled air transportation for passengers and cargo in the US and around the world. Key services offered by the company include:
Services:
Passenger Transport Cargo Transport Aircraft Management Maintenance, Repair, and Operations (MRO) Professional Security Training and Consulting Staffing Services Vacation Packages
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SWOT Analysis
SWOT ANALYSIS
Delta Air Lines Inc (Delta Air Lines) is a global airline company, which provides scheduled air transportation for passengers and cargo. Strong market position, international alliances and flyer program are the company’s strengths, even as working capital deficit remains a cause for concern. Growing global travel and tourism industry and growth initiatives could provide growth opportunities to the company. However, foreign currency fluctuations, covid-19 and stringent airline regulations could affect the company’s operations.
Strength
Market Position International Alliances Flyer Program
Weakness
Working Capital Deficit
Opportunity
Growing Global Travel and Tourism Industry Global Air Transport Industry Outlook Growth Initiatives
Threat
Currency Fluctuations Coronavirus (COVID-19) Outbreak Airline Regulations
Strength
Market Position
A strong market position showcases the company’s outstanding performance, as against its peers in specific areas, and helps it gain new businesses easily. Delta Air Lines is one of the leading US global airline serving more than 200 million customers each year with over 15,000 daily flights. The company is also one of the world’s largest airline in terms of total revenues and the most profitable with five consecutive years of over US$5 billion in pre-tax income. Its key hubs and markets include Atlanta, Boston, Los Angeles, Seattle, Detroit, New York-JFK, Minneapolis-St. Paul, New York-LaGuardia, Salt Lake City, London-Heathrow, Amsterdam, Paris-Charles de Gaulle, and Tokyo-Narita. The company serves 300 destinations in 50 countries in six continents. Delta Air Lines operates a total fleet of 898 aircraft, which include B717–200, B757–300, B767–400ER, A320–200, A330–300, B777–200LR, B777–200ER, MD-90 and MD–88 among others; and 442 aircraft through regional carriers, which include CRJ-200, CRJ-700, CRJ-900, Embraer 170 and Embraer 175. As of October 2019, Delta Air Lines through its alliance partners served 900 destinations in 140 countries.
International Alliances
International alliances helped Delta Air Lines to offer increased flight frequencies and better customer service, enhancing its competitive advantage. Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements include reciprocal
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codesharing and frequent flyer program participation, airport lounge access arrangements, joint sales and marketing coordination, co-location of airport facilities and other commercial cooperation arrangements. The company's international codesharing agreements enable it to market and sell seats to an expanded number of traditional European and Asian gateway cities. Under international codesharing arrangements, Delta and a foreign carrier each can publish their respective airline designator codes on a single flight operation. This allows the company and the foreign carrier to offer joint service with one aircraft, rather than operating separate services with two aircraft. These alliances also provide an opportunity in further areas such as aircraft maintenance insourcing, airport ground handling arrangements and joint procurement. Delta is also a member of the SkyTeam global airline alliance, which comprises 19 member airlines and has access to 1,036 destinations worldwide. Its members include Aerolineas Argentinas, Aeroflot, Air Europa, Aeromexico, Alitalia, China Airlines, Kenya Airways, Air France, Middle East Airlines, China Eastern, Garuda Indonesia, CSA Czech Airlines, Tarom, KLM, Korean Air, Saudi Arabian Airlines, Xiamen Airlines and Vietnam Airlines. The company also has a joint venture agreement with Air France and KLM to share decision making, revenues and costs on transatlantic routes; and with Virgin Atlantic Airways; Aeromexico, Virgin Australia Airlines and Korean Air Lines.
Flyer Program
Focus on Flyer program enabled the company to offer its customers incentives and expand traveler loyalty. The company through its SkyMiles frequent flyer program provides program members to receive mileage credit for travel awards who fly on its carriers and other participating airlines. It also gives an option to earn mileage credit by utilizing certain services, which are offered by program participants such as credit card companies, car rental agencies and hotels. Individuals can also purchase mileage credits. SkyMiles program mileage credits can also be exchanged for air travel on Delta and participating airlines, for membership in Delta Sky Clubs and for other program participant awards. The company offers last- seat availability for travel awards on its own flights. In FY2019, 20 million award redemptions were done by program members. In August 2019, Delta SkyMiles was named a Best Travel Rewards Program for 2019-2020 by the US News & World Report.
Weakness
Working Capital Deficit
The company reported a deficit in working capital, which could affect its short-term business operations. In FY2019, the company reported deficit of US$11,955 million, and US$12,238 million, respectively in FY2019 and FY2018. It was due to higher total current liabilities as compared to total current assets. The company’s current assets increased to US$8,249 million from US$6,340 million in FY2018. Also, its current liabilities increased to US$20,204 million in FY2019 from US$18,578 million in FY2018.
Opportunity
Growing Global Travel and Tourism Industry
The company is likely to benefit from the positive outlook for global T&T industry. According to the World
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Travel & Tourism Council (WT&TC), the direct contribution of T&T industry to the world’s GDP is expected to increase by 3.6% per annum during the forecast period (2019-2029), to reach US$4,065 billion in 2029. Moreover, the industry's total contribution to GDP may increase to US$13,085.7 billion in 2029. The increase in investments in the T&T industry to US$1,489.5 billion in 2029, is likely to boost activities within the T&T industry.
Global Air Transport Industry Outlook
The company is likely to benefit from growing global air transport industry. According to the International Air Transport Association (IATA), overall revenue of global air transport industry is expected to reach US$872 billion in 2020 from US$838 billion in 2019. Its net profit is expected to reach US$29.3 billion in 2020 compared to US$25.9 billion in 2019. The net profit of airlines in North America is expected to account for US$16.5 billion in 2020; followed by Europe US$7.9 billion; Asia-Pacific US$6 billion; and Latin America US$500 million in 2020. Growth is expected to be driven by strong demand, reduced interest payments and efficiency. Also, passenger numbers are forecast to reach 4.72 billion in 2020 and cargo carried to 62.4 million tons in 2020. Passenger business is expected to be supported by GDP growth in 2020 and cargo business by strong increase in cargo volumes along with recovery in yields.
Growth Initiatives
Delta Air Lines is taking various strategic initiatives to drive growth. The initiatives are expected to strengthen the company’s operations and increase its returns. In this direction, the company and LATAM Airlines Group and its affiliates have signed a trans-American joint venture agreement in May 2020. This agreement combines the carriers’ highly complementary route networks between North and South America and serves its customers with a seamless travel experience and industry-leading connectivity. In January 2020, the company entered into an agreement with Vietnam Airlines to expand the two-way codeshare cooperation. This initiative enables its passengers to book and fulfill flight formalities one time either through Vietnam Airlines or Delta Air Lines for their entire journey and adds significant convenience for passengers flying between Vietnam and the US.
Threat
Currency Fluctuations
Unfavorable changes in foreign currency exchange rates are likely to increase the company’s expenses. Delta Air Lines has operations in 50 countries and recorded 29.2% of its total sales from international customers during FY2019. The appreciation of non-reporting currencies such as Australian Dollar, Mexican Peso, Japanese Yen, British Pound, and Euro appreciation over US Dollar or vice versa could incur increase costs to the company, and increase capital expenditure in US Dollar terms. In FY2018, the company also reported a profit of US$6 million on foreign currency exchange contracts as compare to a loss of US$3 million in FY2018.
Coronavirus (COVID-19) Outbreak
Impact of Covid-19 on Aviation/Airline industry is expected to be most affected due to Coronavirus
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pandemic (COVID-19) in 2020. Country-specific regulations on international flights, long-distance travel bans, and trip cancellations affected the global flight capacity and so far resulted in huge losses to the aviation industry. Governments in various countries imposed several restrictions to contain the spread of the virus such as US-Canada border closure for non-essential traffic, EU’s 30-day ban on non-essential travel to about 26 European countries from the rest of the world, the US 30-day ban on Schengen travellers, and lockdown in Italy, the UK, Australia, India and other countries. As a result of these travel restrictions, the global air traffic is expected to decline in the short-term. According to International Air Transport Association’s (IATA) projection on March 24, 2020, the global airline industry is predicted to report a passenger revenue loss of US$252 billion in 2020. Asia Pacific Europe, North America, the Middle East, Latin America, and Africa are expected to report passenger revenue loss of US$88 billion, US$76 billion, US$50 billion, US$19 billion, US$15 billion and US$4 billion, respectively, in 2020.
Airline Regulations
Delta Air Lines is required to comply with the Federal Aviation Administration (FAA) and Department of Transportation (DOT) regulations under the provisions of the Federal Aviation Act of 1958. The FAA prescribes standards and licensing requirements for both aircraft and components. The DOT regulates economic issues that can affect air service, including competitive practices, consumer protection, insurance, certification, and fitness and citizenship. The company is also subject to regulations by foreign government agencies and aviation agreements signed between the US and the respective countries. In addition, the company is subject to the U.S. Transportation Security Administration (TSA) that regulates aviation security to ward off unauthorized access to freighter and passenger aircraft and prohibits firearms and explosives on an aircraft and others. Furthermore, the company is subject to the U.S. Environmental Protection Agency (the EPA) regulating air quality. Introduction or changes in the labor and employment regulations; and administrative regulations could erode the profitability of the company. The company is also subject to inspection by the FAA and other regulatory agencies, with non-compliance leading to possible fines and other penalties.
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Top Competitors
TOP COMPETITORS
The following companies are the major competitors of Delta Air Lines Inc
Air Canada Alaska Airlines Inc Allegiant Air LLC American Airlines Inc British Airways Plc Deutsche Lufthansa AG Etihad Aviation Group PJSC JetBlue Airways Corp Qantas Airways Ltd Qatar Airways Group QCSC Southwest Airlines Co Spirit Airlines, Inc. The Emirates Group United Airlines Inc
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Company View
COMPANY VIEW
A Management Discussion and Analysis section of the company is given below. The statement has been taken from the company’s 10-K 2019 report.
Year in Review Delta had a strong year in 2019, delivering record financial results and making significant progress on strategic priorities. We leveraged our brand momentum to drive strong revenue growth and improvement in pre-tax income, margin, earnings per share and free cash flow over 2018. Strategic accomplishments during the year include our renewed agreement with American Express and announcing plans to enter into a strategic alliance with LATAM. Our pre-tax income for 2019 was $6.2 billion, representing a $1 billion, or 20%, increase compared to the prior year. Diluted earnings per share of $7.30 improved 29% over 2018. Our $8.4 billion of cash flows from operations helped fund $4.9 billion in capital expenditures, resulting in free cash flow of $4.2 billion, representing a $1.8 billion improvement to the prior year. We returned 72% of free cash flow, or $3 billion, to shareholders through share repurchases and dividends. The improvement in earnings and cash flow primarily resulted from a $2.6 billion increase in revenue and lower fuel expense on an 8% decrease in the market price per gallon of fuel and improved fuel efficiency. We continued to run the world’s most reliable airline and set a new record for zero cancel days with 165 cancel-free days across the system and 281 on our mainline operations. Industry-leading operational performance, our culture of service and continued product investments supported record customer satisfaction scores. In 2019, we increased net promoter scores in every geographic region, highlighted by a 5-point improvement in the Domestic region to 50%. Strong Brand Drives Revenue Growth Compared to 2018, our operating revenue increased $2.6 billion, or 5.8%, on balanced growth across our diverse revenue streams, with premium product ticket revenue driving nearly half of the improvement, and strong growth in both loyalty and MRO revenue. Total revenue per available seat mile ("TRASM") and TRASM, adjusted (a non-GAAP financial measure) increased 1.2% and 2.8%, respectively, compared to the prior year, led by (1) unit revenue growth in our Domestic and Latin regions, (2) demand strength in both business and leisure segments and (3) strong growth in premium products and non-ticket revenues. Total loyalty revenue grew 18% in 2019. Solid Cost Performance Operating Expense. Operating expense increased $1.2 billion, or 3.1%, primarily due to higher revenue- and capacity-related expenses including wages and profit sharing for employees and contracted services expense. Salaries and related costs were higher due to pay rate increases for eligible employees implemented during 2019, while profit sharing was higher due to increased profitability in 2019. The increase in contracted services expense predominantly relates to services performed by Delta Global Services ("DGS") that were recorded in salaries and related costs prior to the sale of that business in December 2018. These increases were partially offset by lower fuel expense on an 8% decrease in the market price per gallon of fuel and improved fuel efficiency driven by our ongoing fleet transformation. Our operating cost per available seat mile ("CASM") decreased 1.3% to 14.67 cents compared to 2018, primarily due to lower fuel expense and a 4.6% increase in capacity. Non-fuel unit costs ("CASM-Ex", a non-GAAP financial measure) increased 2.0% to 10.52 cents due to the higher revenue- and capacity- related expense increases discussed above. Non-Operating Expense. Total non-operating expense was $420 million during 2019 compared to $113 million in 2018, primarily due to an increase in pension and related expense compared to the prior year, partially offset by higher gains on investments.
Expanding Our Global Network In 2019, international revenues grew 2.7% on a 3.3% increase in capacity. We continued to make significant progress in expanding our global reach by acquiring an equity
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stake in Hanjin-KAL, the largest shareholder of Korean Air, and announcing plans to enter into a strategic alliance with LATAM and completing a tender offer to acquire a 20% equity stake which closed in January 2020. Effective in January 2020, we combined our separate transatlantic joint venture agreements with Air France-KLM and Virgin Atlantic into a single three-party transatlantic joint venture. In addition, we continue to make progress on our joint venture agreement with WestJet with respect to trans-border routes between the U.S. and Canada. This agreement remains subject to required regulatory approvals. Investing for the Future Our $8.4 billion of cash flows from operations helped fund $4.9 billion in capital expenditures for the business. As part of our multi-year fleet transformation, we took delivery of 88 new aircraft, including A321-200s, B-737-900ERs, A350-900s, A330-900s, A220-100s and CRJ-900s. These deliveries allowed for the retirement of older, less fuel efficient aircraft, including the announced retirement of our MD-90 fleet by the end of 2022. We also made significant investments in cabin interior refurbishments, Sky Clubs and technology. The non-GAAP financial measures free cash flow, TRASM, adjusted and CASM-Ex used above, are defined and reconciled in "Supplemental Information" below.
Results of Operations
Passenger Revenue Ticket revenues, including both main cabin and business cabin and premium products increased $2.0 billion compared to the year ended December 31, 2018. Business cabin and premium products ticket revenue includes revenues from fare products other than main cabin, including Delta One, Delta Premium Select, First Class and Comfort+. The growth in ticket revenue was driven by strength in the Delta brand and products, capitalizing on healthy industry business and leisure demand. We continue to take delivery of new aircraft that include more premium seats, while also generating higher paid load factor for premium products. Loyalty travel awards revenue increased $249 million compared to the year ended December 31, 2018 due to growth in mileage redemptions. Travel-related services increased $315 million compared to the year ended December 31, 2018 primarily due to increases in checked baggage and ticket change revenues.
Passenger revenue increased $2.5 billion, or 6.3%, compared to the prior year. PRASM increased 1.7% and passenger mile yield increased 0.8% on 4.6% higher capacity. Load factor increased 0.8 pts from the prior year to 86.3%. Domestic unit revenue increased 2.4%, resulting from our commercial initiatives, including our premium products, as well as high load factors driven by a combination of strong demand and limited industry capacity growth.
Passenger revenue related to our international regions increased 2.7% year-over-year primarily due to capacity growth in the Atlantic region and yield strength in the Latin America region. This growth in passenger revenue was achieved despite the negative impact of foreign currency fluctuations. Atlantic unit revenues decreased due to foreign currency fluctuations between the U.S. dollar and the Euro and British pound, the uncertain economic outlook in Europe and increased industry capacity. These conditions were partially offset by growth in premium product demand and strong U.S. point of sale. Unit revenue increased in Latin America principally as a result of yield growth, mainly due to reduced industry capacity in Brazil and improvements in Mexico beach markets. In the September 2019 quarter we announced our plan to enter into a strategic alliance with LATAM, which is expected to provide great customer convenience, a more seamless travel experience and to better connect customers between North and South America. Unit revenue decreased in the Pacific region primarily on persistent economic and trade related uncertainty, foreign currency fluctuations and increased capacity to China, Japan and Korea due to our network transformation. Despite these challenges, our joint venture with Korean Air has
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enabled solid traffic growth and we have continued to reshape our Pacific network with the announcements that in the March 2020 quarter we will transfer our U.S.-Tokyo services from Narita to Haneda airport, Tokyo's preferred airport for corporate customers, and shift our Beijing service to the new Beijing Daxing airport. Starting in February 2020, we temporarily suspended flights between the U.S. and China as the result of an outbreak of a novel coronavirus originating in Wuhan, Hubei Province, China. We have suspended flights between the U.S. and China through April 30, will continue to monitor the situation closely and may make additional adjustments. Loyalty Program. Loyalty program revenues relate primarily to brand usage by third parties and include the redemption of miles for non-travel awards. Effective January 1, 2019, we amended our co-brand agreement with American Express, and we also amended other agreements with American Express during the March quarter. The new agreements increase the value we receive and extend the terms to 2029. Under the agreements, we sell miles to American Express and allow American Express to market its services or products using our brand and customer database. The products and services sold with the miles (such as award travel, priority boarding, baggage fee waivers, lounge access and the use of our brand) are consistent with previous agreements. We continue to use the accounting method that allocates the consideration received based on the relative selling prices of those products and services. The increase in loyalty program revenues are primarily related to brand usage by American Express. Ancillary Businesses and Refinery. Ancillary businesses and refinery includes aircraft maintenance provided to third parties, our vacation wholesale operations, our private jet operations and refinery sales to third parties. Refinery sales to third parties, which are at or near cost, decreased $451 million compared to 2018. The 2018 results also included $244 million of third-party revenue from DGS, which was sold in December 2018. These decreases were mitigated by growth in our MRO revenues, which increased $175 million to $877 million during 2019. In January 2020, we combined Delta Private Jets, our wholly owned subsidiary which provides private jet operations, with Wheels Up. Upon closing, we received a 27% equity stake in Wheels Up. Delta Private Jets will no longer be consolidated and annual revenues of approximately $200 million, which have historically been generated ratably through the year, will no longer be reflected in ancillary businesses and refinery revenue. Miscellaneous. Miscellaneous revenue is primarily composed of lounge access and codeshare revenues, with lounge access revenue driving the majority of the $160 million increase compared to 2018. We continually enhance the customer experience at our lounges, which also included opening three new Sky Clubs during 2019 in Austin, Phoenix and New Orleans.
Salaries and Related Costs. The increase in salaries and related costs is primarily due to pay rate increases for eligible employees. This increase is partially offset by salaries for DGS employees, which are no longer included in salaries and related costs following the sale of that business in December 2018. DGS-related expenses are now recorded in contracted services. Aircraft Fuel and Related Taxes. Fuel expense decreased $501 million compared to the prior year despite a 4.6% increase in capacity, due to an 8% decrease in the market price per gallon of fuel and improved fuel efficiency driven by our investment in new aircraft.
Contracted Services. The increase in contracted services expense predominantly relates to services performed by DGS that were recorded in salaries and related costs prior to the sale of that business in December 2018. During 2018, DGS incurred expenses of approximately $350 million related to internal Delta services that were primarily recorded in salaries and related costs. After the sale of DGS to a third party, we now record these expenses and our portion of the new entity's ("AirCo") financial results under the equity method of accounting, in contracted services.
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Depreciation and Amortization. The increase in depreciation and amortization primarily results from $79 million of accelerated depreciation due to the decision to early retire our MD-90 fleet by the end of 2022, new aircraft deliveries, fleet modifications and technology enhancements. As we take delivery of new aircraft, we continue to evaluate our current fleet compared to network requirements. See Note 11 of the Notes to the Consolidated Financial Statements for additional information on the planned early retirement of our MD-90 fleet. In addition to investing in our fleet, we have also increased our technology investments in an effort to enhance interactions with our customers and allow us to deliver more personalized service, further enhancing the customer experience and strengthening our brand and competitive position. During 2019, we delivered several capabilities that enable our front-line employees to personalize their interactions with our customers, added self-service features on the FlyDelta app, including automatic international check-in, integrated security wait times and the ability to pre-select meals in Delta One and domestic First Class. In addition, we expanded facial recognition biometric boarding for international travelers in the Atlanta, Minneapolis-St. Paul and Salt Lake City airports. These increased capital expenditures have led to a corresponding increase in depreciation and amortization. Aircraft Maintenance Materials and Outside Repairs. Aircraft maintenance materials and outside repairs consist of costs associated with the maintenance of aircraft used in our operations. The increase primarily relates to a higher volume of scheduled engine overhauls on certain aircraft during the second half of 2019. Profit Sharing. Profit sharing expense increased $342 million to $1.6 billion, marking the sixth consecutive year that Delta employees will receive over $1 billion in recognition of their contributions to the company's performance. The increase in profit sharing is related to higher profit during the year. Our profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual profit and 20% of annual profit above $2.5 billion. Ancillary Businesses and Refinery. Ancillary businesses and refinery includes expenses associated with aircraft maintenance services we provide to third parties, our vacation wholesale operations, our private jet operations and refinery sales to third parties. Expenses related to refinery sales to third parties, which are at or near cost, decreased $451 million compared to the prior year. In addition, approximately $200 million of costs related to services performed by DGS on behalf of third parties were recorded in ancillary businesses and refinery prior to the sale of that business in December 2018. These decreases were partially offset by growth in our MRO business, as discussed above. In January 2020, we combined Delta Private Jets, our wholly owned subsidiary which provides private jet operations, with Wheels Up. Upon closing, we received a 27% equity stake in Wheels Up. Delta Private Jets will no longer be consolidated and annual costs of approximately $200 million, which have historically been incurred ratably through the year, will no longer be reflected in ancillary businesses and refinery expense.
Interest Expense. At December 31, 2018, the principal amount of debt and finance leases was $9.7 billion. During 2019, we issued $1.5 billion of unsecured notes and $500 million of aircraft secured EETC debt. As a result of the debt issuances, partially offset by principal payments, the amount of debt and finance leases was $11.0 billion at December 31, 2019. Despite the increase in debt during the current year, interest expense decreased $10 million compared to the prior year due to recent refinancing transactions at lower interest rates resulting from our improvement to investment grade credit rating in recent years and the favorable interest rate environment. Gain/(Loss) on Investments. Gain/(loss) on investments reflects the gains and losses on our equity investments. The increase compared to 2018 primarily results from unrealized gains in Hanjin-KAL and Air France-KLM. Miscellaneous. Miscellaneous, net is primarily composed of pension and related expense, our proportionate share of earnings from our equity investments in Virgin Atlantic and Grupo Aeroméxico, charitable contributions and foreign
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exchange gains/(losses). The change from 2019 compared to 2018 primarily results from the unfavorable movement in pension and related expense and the sale of our DGS entity in 2018. The pension and related expense was $65 million in 2019 compared to a benefit of $245 million in 2018. In 2018, the sale of our DGS entity to a subsidiary of Argenbright Holdings, LLC resulted in a gain of $91 million. Our equity investment earnings and foreign exchange gains/(losses) fluctuate and thus impact the comparability of miscellaneous from period to period. Income Taxes Our effective tax rate for 2019 was 23.1%. We expect our annual effective tax rate to be between 23% and 24% for 2020. At December 31, 2019, we had approximately $1.9 billion of U.S. federal pre-tax net operating loss carryforwards, which do not begin to expire until 2027. We believe we will utilize the majority of our remaining federal net operating losses and tax credits during 2020.
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Locations And Subsidiaries
LOCATIONS AND SUBSIDIARIES
Head Office
Delta Air Lines Inc 1030 Delta Blvd Atlanta Georgia Atlanta Georgia USA Phone:1 404 7152600 Fax:1 302 6365454 www.delta.com
Other Locations and Subsidiaries
Aero Assurance Ltd. 76 Saint Paul Street Suite 500 Burlington Vermont Burlington Vermont USA
Delta Flight Products, LLC 1200, 3980 Tradeport Blvd Atlanta Georgia Atlanta Georgia USA
Delta Material Services, LLC 1775 M H Jackson Service Road Atlanta Georgia Atlanta Georgia USA
Delta Private Jets, Inc. Cincinnati/Northern Kentucky International Airport 82 Comair Blvd Erlanger Kentucky Erlanger Kentucky USA Phone:1 800 9270927 Fax:1 800 4569984 www.airelite.com
Delta Professional Services LLC 2341 Bois D Arc Lane Midlothian Texas Midlothian Texas USA
Delta Vacations LLC 700 South Central Avenue Atlanta Georgia Atlanta Georgia USA
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Endeavor Air, Inc. 7500 Airline Drive Minneapolis Minnesota Minneapolis Minnesota USA
Epsilon Trading, LLC Hartsfield International Airport Atlanta Georgia Atlanta Georgia USA
MIPC, LLC 920 Cherry Tree Road Aston Pennsylvania Aston Pennsylvania USA
MLT Vacations Inc USA
Monroe Energy LLC 4101 Post Road Trainer Pennsylvania Pennsylvania USA Phone:1 610 3648000 www.monroe-energy.com
New Sky, Ltd. BMU
Northwest Airlines, Inc. 7500 Airline Drive Minneapolis Minnesota Minneapolis Minnesota USA Phone:1 612 7262111 Fax:1 612 7268000 www.delta.com
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John Carpenter House, John Carpenter Street, London, United Kingdom, EC4Y 0AN T: +44 (0) 203 377 3042 | F: +44 (0) 870 134 4371 | E: [email protected] | W: www.marketline.com
- Company Overview
- Key Facts
- Business Description
- History
- Key Employees
- Key Employee Biographies
- Major Products & Services
- SWOT Analysis
- Top Competitors
- Company View
- Locations And Subsidiaries
