Delta has surpassed all other air cargo providers in profitability in contrast to other Air Freight providers such as United and American. The industry as a whole has been slipping in response to recent economic troubles through out the world. American Airlines is recovering from bankruptcy, and United is still trying to optimize it’s supply chain.
However Delta is showing that it is strong by aggressively seeking out new customers. It has cut its rates significantly to snatch customers from it’s faltering rivals. On top of lower rates, Delta has been ranked very highly for on time delivery compared to it’s competitors. Additionally it has forged deals to carry the postal service’s mail and has created partnerships with airlines like Emirates to increase their networks reach.
However Delta’s success might be a result of its competition faltering more than their success. It remains to be seen if the cuts to their rates can be maintained. Even though the cuts increased their volume their revenue has decreased in the first quarter, which could mean that the plan is not sustainable. In addition United will likely finish its optimization, and will be a more threatening competitor. Delta might fall into a trap of increasing volume, but not greatly increasing profitability.