How Delta made itself America’s luxury airline — and what United wants to do about it

Delta Air Lines is the country’s most profitable airline.

Delta Air Lines is the country’s most profitable airline. CEO Ed Bastian’s challenge is to make sure his carrier stays on top.

The airline’s unit revenue, the amount it brings in for every seat it flies one mile, outpaced its competitors’ last year. Delta’s share price has soared almost 23% in 2024, more than any rival in the rocky airline sector, in a rally that’s outdone the S&P 500′s. It expects free cash flow to rise as much as 50% this year to between $3 billion and 4 billion, and is eyeing a return to an investment-grade credit rating. And a stat any traveler would appreciate: Delta came in first in punctuality last year, with more than 83% arriving on-time, according to the Transportation Department.

Rival United Airlines — second to Delta in net profit margins — is circling. It says it could grow profits even more this year.

“Knowing that there’s someone that thinks that they can take that mantle from us, that keeps us on our toes and keeps us continuing to drive hard,” Bastian told CNBC.

Delta has fashioned itself America’s premium airline. It has won over hordes of splurging travelers, many of them carrying American Express cards, Delta’s cash cow of a partner that generated almost $7 billion for the airline last year. Sales growth of Delta’s roomier and more expensive seats continues to outpace revenue from standard coach.

https://www.nbcnews.com/business/travel/delta-made-americas-luxury-airline-united-wants-rcna158782

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