Delta Air Lines (Est. 1925), popularly known as Delta, is one of the world’s ancient airlines in operation. Delta’s headquarter is in Atlanta, Georgia. The airline has not only its own business, but it has other subsidiaries and regional affiliates like Delta Connection (Est. 1984) that is well known for operating regional airlines. Under the Delta Connection, individually owned airlines operate short and medium-haul routes by code-sharing agreements to increase the frequencies.
Here in Delta Airlines SWOT Analysis, we’ll cover every aspect and angle of the Delta Airlines that is currently operating in 52 countries, besides 5000 flights every 24 hours. Even the number of employees, almost 83,000, makes it a must make SWOT for Delta Airlines.
Obviously, SWOT analysis is our primary aim, but before that, a short portfolio of the company will make it for you to understand. So no time to waste. Let’s roll.
Delta Airlines – At A Glance
|Company Name||Delta Air Lines|
|Founded||March 2, 1925|
|Headquarter||Atlanta, Georgia, U.S.|
|Annual Revenue||$29.90 Billion (FY 2021)|
Delta Airlines SWOT Analysis
Why do you think SWOT analysis is important? SWOT analysis is an important tool to have a proper overview of an organization and find its strengths and weaknesses. By doing so, future opportunities and threats are forecasted accurately. So what are we waiting for? Let’s find out the biggest assets and forecast the Delta Airlines strategic issues in the future.
Strengths of Delta Airlines in SWOT Analysis
Delta Airlines is a vast company; it has to go through ups and downs from time to time. Still, the company is in the race with other aviation companies and serving its customers wholeheartedly.
Brand Value: Delta Airlines have been in operation for almost the past ten decades, and this organization has become a global brand. Above its aviation service and hospitality, the company got many international and national awards as an exemplary organization in the airline sector and for all sectors.
This is not our information. According to Forbes magazine’s estimation, Delta Airlines had a market capitalization of 30.31 billion dollars. Furthermore, it enlisted in the list of Global 2000 companies and got the rank 263rd. Annually 180 million customers take service from Delta Airlines.
To gain more brand value, Delta Airlines have engaged itself with CSR and charitable activities to get more and more familiar with people. So the powerful brand values one of its biggest strengths.
Ownership of Fleet: The ownership of the fleet is a significant issue in the airline business because Delta Air Lines is completely opposite of other airline organizations. The 75% of aircraft of Delta Air Lines are owned by itself. They operate 877 commercial aircraft, and many of them are owned by themselves. Among them, 491 are from Boeing, and 386 aircraft are from Airbus.
Now why does this ownership matter? The only reason Delta Air Lines doesn’t require renting many airlines and it saves a significant amount of costs and is now a way to break the tax. Paying such an amount of tax is a financial strength of the company.
Collaboration with Other Alliances: Having alliances in any business feels like raining blessings from the sky. Delta Air Lines is in the alliance group of SkyTeam that has only 18 airline members, and together they provide a seamless travel experience. So passengers are always looking forward to traveling on Skyline alliance airlines because they get so much convenience.
Delta Airlines has a partnership with Codeshare, allowing them to sell the DL code to other flights operated by partner airlines from SkyTeam. It helps two or more airlines to have one flight that ultimately ensures more hospitality to tourists and makes the Delta Air Lines Popular.
Reward Programs: Rewards like earning 3 miles per dollar on Delta Airlines sound like a lucrative reward. To have this reward using the Delta SkyMiles @Reserve American Express card and spending money on Delta Sky Club lounge at the airport or having a sky bonus helps the service recipients more convenience.
Weaknesses of Delta Airlines in SWOT Analysis
Like strength, every company must have weaknesses, but that doesn’t mean the weaknesses are hidden. All know the weaknesses, but no organization can eliminate them entirely.
Dependent on the Revenue from North America: The weakness of Delta Airlines is the most criticized one, as the company has a network across 6 continents. Still, the airlines’ service is not equally distributed according to the operation routes. Sooth to say, 80% of their profit is guaranteed from North American Flights. So imagine they barely operate the rest 20% of flights locally and internationally, which means Europe, Asia, and Oceania.
Typically, we don’t see any harm as long as it is profitable, but what if Delta Air Lines Suddenly North America’s market continues to be out of reach? It is not unimaginable; that the entire company will then fall head over heels.
Airbus Operated Flights: Most of the aircraft are from the Airbus after Boeing in Delta Air Lines. But Airbus has an issue with the engine. Even recently, in 2020, in India, there was an incident of shutting down the Pratt & Whitney in midair.
But it is nothing new for Airbus; the turbine issue is familiar to his aircraft. That’s why the Federal Aviation Administration set a new guideline for inspection for Airbus. Still, people are using Airbus aircraft willingly. If any more incidents happen, then people will overlook riding on Delta’s Airbus services.
Opportunities for Delta Airlines in SWOT Analysis
Strengths and weaknesses are the things currently an organization is facing. Still, forecasting the opportunities, it may have soon and taking full advantage of any opportunity should be the nature of any well-organized company.
Roaming In Asian Market: Asia has the world’s most populated continent, and because of the 21st century’s globalization effect, more and more countries in Asia are getting developed. Thus the traveling through aircraft is increasing. Most Asian people are trying to migrate to the USA, and thousands of students are going to the USA and Canada to study from Asia.
So if Delta Airlines reach out to grab the Asian market, it may bring out the best economic period of the airline’s lifetime.
Grabbing The Maintenance Service: Maintenance, repair, and overhaul is a subdivision of the Airline industry. If you see Delta Airlines market segmentation, won’t find out anything related to MRO. But they have so much workforce and have operated flights for almost 100 years. Experience matters sometimes. It is high time for Delta Air Lines to expand the MRO section and give service to the other newly born airline companies.
Threats for Delta Airlines in SWOT Analysis
Preparing for the enemy never surprises us when the enemy comes home. Sometimes, invisible threats never make us concerned, but analyzing the market and other businesses, every company should sit tight.
Constant Price Increases of the Jet Fuel Price: Last 2 and half years, the world is facing the most crucial time of the 21st century. No one forecasted and expected the effect of Covid-19. As every organization is trying to get up from the loss they have had, now again the war between Russia and Ukraine threatens another phase of the economic crisis.
It’s already started, fuel price has increased so much, as a result every airline is being forced to increase the ticket price. So people are traveling less because income has not increased yet. That’s why Delta Airlines may face some serious economic issues like they had in the past in 2005, the bankruptcy.
Furthermore, because of covid, regulations are being strictly followed by every country, so the number of flights is decreasing.
Competitive Market: It’s not a time when any company can relax. Every company has competitors. Delta Airlines biggest competitors are British Airways, American Airlines, Republic, SkyWest etc. So, if Delta doesn’t expand its market and continuously analyze the other competitors then Dela won’t give a second chance to achieve customer’s reliability.
Delta Airlines SWOT Analysis Overview Template
Frequently Asked Questions (FAQ)
What are the weaknesses of Delta Air Lines?
– In delta strengths and weaknesses, strength is something every company feels proud of, but it should not overlook the weaknesses. The major concerns for now are very much dependent on the profit of North American flights and faulty Airbus engines.
What are Delta Airlines strengths?
– Rand values, having the ownership of 75% of aircraft, and having alliances are the major strengths.
What is Delta’s target market?
– North America is the Delta Air Line’s target market. But it is also heading to grab the market of North-east countries and Europe.
Recommendations and Conclusion for Delta Airlines
So far, we’ve discussed about Delta Air Lines positives, negatives and limitations. But we talked about the opportunities too. Its time give some of our recommendations for making it’s progress dynamic.
- Delta Air Lines should try to reach for different continents other than North America. During Covid period many students from Asia can’t apply for universities and colleges of USA, Canada etc. So, now more and more students are applying and Delta Air Lines should grab this Chance.
- Advertisements on Social Media works far better than on television and billboard advertisements. It’s time to spend more budget on social media and make people understand what convenience, Delta Air Lines is offering for them.
To get the exquisite idea of Delta Air Lines, look for Delta Airlines PESTLE analysis because it helps to understand the political, economic, social and technological state of Delta Air Lines. We suggest you go through the American Airlines SWOT analysis and United Airlines SWOT Analysis to understand the different perspectives of different airlines. Enough for today. Why don’t you take a deep breath and point out anything that we couldn’t.