Delta Beats Rival To Claim Second Position As Most Preferred Airline
Delta has managed to beat its major rival ‘United Airline’ and secured second position, with the No.1 being American Airlines.
Delta Airlines has managed to beat its rival in the air travel industry. United Airline is now third on the charts to become the United States’ largest airline for the first time; American Airline is on top now. This is mainly because of the recent mergers of the air traveling company.
United States Airlines has recently made huge expansions in terms of its flight operations. It has also managed to win Dallas Love Field and now continuing its flight operations there. The air traveling business also merged with Northwest in 2008. However, the carrier was not the only one in the industry to do so, as United Continental Holding merged with Continental Airline in 2012, while American Airline recently merged with US Airways. According to analysts, such mergers can be expected to grow and often take place in the future.
The rising demand for air travel by the population is the main reason for mergers and expanding operations. Delta Airlines is however winning the race so far. It has reported high traffic for 2015 in comparison to its rival, United Airlines. Its revenue for 2015 was 209.6 billion revenue passenger miles (RPM), which shows a growth of 3.3% (YOY), its rival’s RPM was 208.6 billion, which shows a growth of 2.6%.
Delta is now just a number behind United States’ largest carrier, American Airlines, which is mainly because of the successful merger in 2008 with Northwest. It has not only grown in US but internationally too, such as Brazil. Traffic in air traveling industry is calculated through flight distance, international growth, and other factors.
Delta is expecting more growth for fiscal year 2016, which means other competitors in the market have to keep a close watch. It is also has plans to save almost $3 billion, which might be possible due to the low crude oil prices. Its focus this year will be on money, and generating as much profit as possible, because it has returned some cash to the shareholders in dividends. During the previous financial year, it managed to return almost $2.6 billion to its shareholders and is now planning to return more money this year.
An associate analyst from Sterne Agee CRT, Adam Hackel, said, “The reality is, Delta offers better service and a better product than United, my first thought was people probably prefer to fly to Delta now.” Thus, American Airlines is followed by Delta and then United Airlines now.