In a recent interview, Delta Airlines CEO Ed Bastian laid out his vision for the future of the company. He noted that Delta is well-positioned to weather the current economic downturn and emerge as an even stronger competitor. In particular, he highlighted the airline’s strong financial position, its extensive international route network, and its modern fleet of aircraft.
Bastian also spoke about the need to continue investing in customer service and to remain focused on safety. Looking ahead, he said that Delta plans to continue growing its business and expanding its reach.
Challenges faced by the airlines and how Delta plans to overcome them
The airline industry has been hit hard by the COVID-19 pandemic, with air travel demand plummeting. This has led to widespread job losses and financial difficulties for airlines.
Delta has been affected by these trends but has been able to partially offset them through its strong financial position and extensive international route network. The company has also taken steps to improve its customer service and safety standards.
Looking ahead, Delta plans to continue growing its business and expanding its reach. In particular, the airline is focused on increasing its international presence and modernizing its fleet of aircraft. Additionally, Delta is committed to investing in customer service and maintaining a commitment to safety.
Delta’s new initiatives and 3 focus areas
With the goal of keeping momentum going, Delta has three focus areas for its business:
- Delta Airlines is looking to leverage brand loyalty by enhancing customer trust, brand, along with improving brand and product affinity.
- The company is keen to restore its balance sheet. It already has completed its initial phase of debt reduction. Now, it is evaluating further opportunities.
- The airline operator is also eager to drive efficiency by targeting non-fuel cost per available seat mile (CASM) below pre-pandemic levels by the end of this year while it catalyzes its fleet renewal program.
Passenger opportunities for Delta Airlines
Delta Airlines is not solely focused on flying between major cities, but also small and medium sized enterprises (SME). The airline has seen an increase in demand from this sector of the market as people choose to pay a premium for better service. In order expand its presence even further with SMEs, Delta usually focuses primarily on larger corporate clients who can afford their high prices
As mentioned before – there are new segments emerging thanks largely due to Delta’s efforts: business travelers will now have more options when they fly.
“We also want to be the airline of choice in the midsize market for business as well. We’ve had a lot of opportunities to get closer to that marketplace during the pandemic. That segment of business travel is actually a bit larger than the traditional large corporate travel segment, and it’s also held up the best in the pandemic,” said Bastian.
Delta’s leadership predicts that volumes for domestic business travel in the first four months after July will be even higher than what was seen last year alone. Notably, forward premium revenue growth has pulled ahead of main cabin income while upsell rates are advancing–a clear sign this company is confident about their future prospects.