Delta Air Lines leads US airline profitability amid industry recovery

Home
»
Stories
»
2024
»
November

GLOBAL INDUSTRY NEWS

Global Industry News

Delta Air Lines leads US airline profitability amid industry recovery

Policy

Airbus A380 | Airbus

By Sky Industry News

Nov 13, 2024

The aviation industry is slowly recovering from the severe impact of the COVID-19 pandemic. During this period, many airlines faced financial difficulties, with some filing for bankruptcy or ceasing operations altogether. However, as travel demand has rebounded, airlines have gradually restored their workforce and operations to pre-pandemic levels, leading to improved profitability.

Spirit Airlines has experienced financial challenges recently. The ultra-low-cost carrier's unsuccessful merger attempt with JetBlue Airways highlighted its poor profits over the past years. Rumors suggest that Spirit might file for bankruptcy unless it finds a solution soon.

Mergers have also played a significant role in shaping the financial landscape of US airlines. Alaska Airlines' recent acquisition of Hawaiian Airlines for nearly $2 billion followed reports of Hawaiian's debt issues. Similarly, American Airlines avoided bankruptcy in 2013 through a reverse merger with US Airways.

Get the Newsletter

Sign-up to receive weekly round up of news from Sky Industry News

By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Among the major US carriers, Delta Air Lines stands out as the most profitable. According to Statista, Delta generated an operating revenue of approximately $58.2 billion last year, making it North America's most profitable passenger airline and placing it among the top globally. Insider Monkey notes that Delta ranks fourth worldwide in profitability.

In addition to legacy carriers like Delta, low-cost airlines such as Frontier Airlines and Sun Country Airlines have also shown strong performance. Skift reported that Sun Country achieved an operating margin of 13% last year, the highest among US carriers. Despite facing overcapacity issues in domestic markets, Sun Country remains a major contender in the Midwest due to its presence in Minneapolis-St. Paul.

Jay Shabat from Airline Weekly highlights Minneapolis as a solid market for Sun Country because of large corporations like United Healthcare and Target located there. The airline continues to expand its cargo operations and plans to increase its passenger aircraft fleet in the coming years.

Sun Country reported more than $30 million in profit during the first quarter of this year, maintaining momentum from 2023.