North America: powerhouse of global profits
New IATA summit reports forecast global airline revenues $743 billion dollars, profits $31.4 billion dollars in 2017, with North America accounting for more than 50%.Industry forecasting a record volume of 4 billion annual travels.Asia Pacific forecasts $7.4 billion dollars, with noted rebound in cargo market, which accounts for more than 40% of global volumes.
Multiple pressures push airlines competition for Asia and China
Virgin Australia, Singapore airlines, Cathay Pacific post record losses in 2016 from decreasing domestic demand and high costs. Low cost carriers eroded Delta, United and American’s share in the transatlantic market. With looming travels bans disrupting Europe and the Middle East airlines are looking eastward to address China market in efforts to try to regain the huge losses elsewhere.
It’s a laptopocalypse !
Middle Eastern airline profits plunge, other bracing as travel ban widens
Airlines are seeing setbacks as a result of the recent carry-on laptop ban for flights traveling to U.S. and UK directly from Middle East. Emirates reported 82% dip in profits from last year and begins cutting flight capacities to major U.S. cities. Recent terror attacks in Europe further confirms airlines fear of new waves of travel and electronic bans both to and from U.S . ,Europe and Middle East.
IT system posts biggest threat to airline profits
More than 75,000 passengers were affected by British Airway’s IT system meltdown over the weekend and caused the airline more than $150 million and countless in long term reputation. Airlines run into frequent IT disaster as their large system are often a result of countless updates, merges and addition of new functions and features, one faulty router sent Southwest system down for more than 12 hours and resulted in more than 2300 flights canceled.
Warren Buffett continues to bet on U.S airlines growth
Biggest shareholder in American Airline, Southwest and Delta Berkshire Hathaway up sizable stake in American Airline and Southwest by 8 and 10 percent respectively from the firm’s first quarter reports. After a decade of consolidation and the shadow of fuel and labor cost, the airline industry is finally soaring into profitability as they slowly monopolizes routes and increased barrier of entry.
Delta partners with Lyft rideshare
In another smart partnership after Clear and Airbnb to attract more young and professional travellers, Delta frequent flyers will get one point for every dollar they spend on Lyft rideshare. Delta has forego Uber because of its numerous disputes with authorities, drivers and employees. Travelling in taxi/ shared car is also a major part of business travel, operators such as 首汽约车 that also targets a more luxury forward travellers could make great partners for Delta in China.
Speed, Comfort, Convenience Delta, Always on time
Delta is slowly becoming U.S. travellers’ favorite airline
Delta tops the chart in on time arrivals, 86.9%, followed by Hawaiian, United, American. Only 65.5% of Virgin’s flights arrived on time, according U.S. Transportation department
On time arrival rate is something that business travellers value the most and will be a key strength for Delta going into the future to capture its frequent business flyers
Creating culture pays off
In the latest report, Delta bumps the least number of travellers off their flights. And also receives the most volunteers who gave up their seats. It goes to show creating culture and showing respect for your customers pays in the long run.
Delta reads 80,000 employee names on livestream
Delta held a 50 hours long Big Thankyou livestream show reading out 80,000 employees names, 450 participated in the act including celebrities, athletes and business leaders. This act aims to show appreciation for its employees as the busy travel season starts. Many of the viewers are Delta employees and were excited to tune in on their names being read on the live show