Strengths

1. Achieved break-even point: Delta airlines was the most profitable airline in history in 2013 and held on its good momentum till today. Even in financial year 2016, it has earned total revenue of $1.56billion up from $926 million in 2015.

2. Good Labour relations and loyalty: The carrier has good relationship with all of its employees which have contributed to the increased investor interest and operational success. Delta’s around 12000 mainline pilots are represented by the Air line pilots association, International and is the union’s largest pilot group. In 1982 when the airline was going through financial troubles, its employees took a voluntary pay cut and with which delta purchased its first Boeing 767 which was then called “spirit of Delta”.

3. Extra benefits for customers: Delta has many long-term advantages and offering under which it offers Wi-fi service to in-flight passengers and on-board passengers, Delta on Demand digital entertainment system which provides satellite TV, movies, MP3 songs, games etc. For first class passengers, it offers same features as of economy but more comfy pillows, free cocktails, blankets etc.

4. SKY Team member: Delta airlines is one of the 20 members of the sky team in which customers have the privilege like they can have Preferred seating, Priority check-in counters, Extra baggage allowance for customers carrying baggage more than the limit, Priority boarding or at leisure and Priority reservation waitlist. After joining Sky team, the company expenses on different services reduces by a considerable amount as they share various cargo and customer services with each other.

5. Following “STARS” Methodology: Operating under the BCG Matrix, the company has many stars, for e.g., it’s worldwide route system, fares, and it’s all fleet over 800 and also it has partial ownership in Orbitz and world span websites for purchasing tickets online where Delta offers 3-5% discount and also 2% discount for check-in through self-service kiosks.

Opportunities

1. Strategic partnership: The establishment of strategic partnerships with airlines such as China Eastern and Gol Linhas Aéreas Inteligentes is key to broaden its global network especially in Asia and Latin America.

2. Low pricing tickets: According to one of the survey conducted by CNN, there will be 50% increase in air traffic in coming years. This can be a great opportunity for Delta to increase its revenue, market share, customer base if it keeps the price low and competitive.

Economic

1. Trade protectionism policies – advantage for Delta: Trade protectionism and government subsidies result in changing the industry environment giving advantage to select companies. The major airlines in the Unites States including Delta Air Lines have accused the major gulf based carriers such as Etihad, Qatar Airways of getting unfair subsidies from their respective governments. Implementation of trade protectionism policies under Donald Trump administration will be advantageous for US based aviation players such as Delta Air Lines.

2. Expensive labor contracts may impact future profitability: Many network carriers in the United States including Delta Air Lines have inked new, more expensive labor contracts over the past year. Delta’s new four-year labor contract in 2016 contains major pay raise and also includes profit-sharing formula. Though the airline is delivering strong financial performance over the past few years, these contracts may result in huge payroll costs in the future impacting profit margins.