Business Analysis of Delta Airlines

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Delta Airlines

DELTA AIRLINES

Business Overview

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its route network is centered around a system of hubs, international gateways, and airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including delta.com and mobile applications/Web, telephone reservations, online travel agencies, traditional brick and mortar, and other agencies. It also provides aircraft maintenance, repair, and overhaul services; staffing, and professional security and training services, as well as aviation solutions to third parties; vacation packages to third-party consumers; and aircraft charters, and aircraft management and programs. As of February 2, 2017, the company operated a fleet of approximately 800 aircraft. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.

Delta Airlines

Delta Airlines


R&P Rank: 66
Sector: Travel & Leisure
Industry:Airline
H.Q Location:Georgia
Website: www.delta.com
Company Address:
HARTSFIELD-JACKSON ATLANTA INTL AIRPORT, 1030 DELTA BOULEVARD, ATLANTA GA 30354-1989
Ph:404-715-2600

Business Analysis of Delta Airlines

The Travel & Leisure Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Delta Airlines compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Delta Airlines to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Delta Airlines with an interactive chart.

  1. Revenue Growth: Delta Airlines reported a revenue growth of -2.6% year-on-year during 2016. Airline Industry grew at -1.0% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Delta Airlines spent 44.5% of its total revenues on COGS. Airline industry average (COGS share of revenue) in the same period was 38.0%
  3. R&D share of Revenues: Delta Airlines R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Delta Airlines spent 25.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Airline industry average SG&A spending in the same period was 29.6%
  5. Inventory share of Revenues: As a percentage of revenue, Delta Airlines spent 2.2% of its total revenues on Inventories. Airline industry average Inventory spending in the same period was 2.2%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Delta Airlines invested 6.5% of its total revenues on Accounts Payable (A/P) Airline industry average Accounts Payable investment in the same period was 5.2%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Delta Airlines invested 5.2% of its total revenues on Accounts Receivable (A/R). Airline industry average Accounts Receivable investment in the same period was 3.8%
  8. PP&E share of Revenues: As a percentage of revenue, Delta Airlines invested 61.5% of its total revenues on Property, Plants, and Equipments (PP&E). Airline industry average PPE investment in the same period was 73.7%
  9. Intangibles share of Revenues: As a percentage of revenue, Delta Airlines invested 36.9% of its total revenues on Intangibles. Airline industry average Intangibles investment in the same period was 20.3%
  10. Net Margins: Delta Airlines Net Margins in the year 2016 were 11.0%. Airline industry average Net Margins in the same period were 8.6%

Sector and Industry Association of Delta Airlines

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Delta Airlines is associated with Travel & Leisure Sector and Airline Industry.

Travel & Leisure sector is comprised of the following industries: Airline; Car Rental Services; Casino; Hotels and Resorts; Recreational Services. The definitions for each of the industries is as follows:

  • Airline industry includes companies primarily engaged in providing passenger air transport.
  • Car Rental Services industry includes companies engaged in providing car rental services.
  • Casino industry includes providers of gambling and casino facilities.
  • Hotels and Resorts industry includes operators of hotels, motels, lodges, resorts, spas and campgrounds.
  • Recreational Services industry includes providers of leisure facilities and services, such as amusement and theme parks, fitness centers, cruise lines, movie theaters, racetracks, and sports teams.

Industry Ranking of Delta Airlines

With $39.6 billion revenues, Delta Airlines ranked number 2 of all the companies in the US Airline industry. There were a total of 10 public companies in the US Airline industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Airline industry by revenues during 2016 were:

  1. American Airlines ($40.2 billion)
  2. Delta Airlines ($39.6 billion)
  3. United Continental ($36.6 billion)
  4. Southwest Airlines ($20.4 billion)
  5. JetBlue Airways ($6.6 billion)
  6. Alaska Air Group ($5.9 billion)
  7. SkyWest ($3.1 billion)
  8. Hawaiian Holdings ($2.5 billion)
  9. Spirit Airlines ($2.3 billion)
  10. Allegiant Travel ($1.4 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Delta Airlinesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of delta-airlines

American Airlines (AAL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

American Airlines Group Inc. with $40 billion revenues in the year 2016 was the number 1 Airline company. Read this report to know the top competitors of American Airlines and identify growth and cost optimization opportunities of American Airlines

United Continental (UAL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

United Continental Holdings, Inc. with $37 billion revenues in the year 2016 was the number 3 Airline company. Read this report to know the top competitors of United Continental and identify growth and cost optimization opportunities of United Continental

Southwest Airlines (LUV) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Southwest Airlines Co with $20 billion revenues in the year 2016 was the number 4 Airline company. Read this report to know the top competitors of Southwest Airlines and identify growth and cost optimization opportunities of Southwest Airlines

JetBlue Airways (JBLU) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

JetBlue Airways Corp with $7 billion revenues in the year 2016 was the number 5 Airline company. Read this report to know the top competitors of JetBlue Airways and identify growth and cost optimization opportunities of JetBlue Airways

Alaska Air Group (ALK) Business Analysis – Analyze Historical Performance, Strategic...

Alaska Air Group, Inc. with $6 billion revenues in the year 2016 was the number 6 Airline company. Read this report to know the top competitors of Alaska Air Group and identify growth and cost optimization opportunities of Alaska Air Group

SkyWest (SKYW) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

SkyWest Inc with $3 billion revenues in the year 2016 was the number 7 Airline company. Read this report to know the top competitors of SkyWest and identify growth and cost optimization opportunities of SkyWest

Revenues Analysis

Delta Airlines (DAL) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Delta Air Lines Inc (DAL) from 2012 to 2016. Delta Airlines generated a total of $39.6 billion revenues during 2016. Delta Airlines reported a revenue growth of -2.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Delta Airlines (DAL) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Delta Air Lines Inc (DAL) from 2002 to 2016. Delta Airlines generated a total of $39.6 billion revenues during 2016. Delta Airlines reported a revenue growth of -2.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Delta Airlines (DAL) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Delta Air Lines Inc (DAL) revenue growth with Airline industry growth during the last five years from 2012 to 2016. Delta Airlines reported a revenue growth of -2.6% year-over-year during 2016. The Airline industry growth was -1% year-over-year during 2016. Delta Airlines growth was slower than the industry during 2016.

Profit Analysis

Delta Airlines (DAL) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Delta Air Lines Inc (DAL) from 2012 to 2016. Delta Airlines reported a total net income of $4.4 billion during 2016. Delta Airlines generated a total of $39.6 billion revenues during 2016. Delta Airlines net profit margin was 11% during 2016. The net profit and the net