United Airlines and Delta Air Lines jets
Sam Hodgson | Bloomberg | Getty Images
Rio de Janeiro — delta airlines The airline is the nation’s most profitable airline, but its hungry rivals, united airlinesis much larger in the Pacific Ocean. Peter Carter, Delta’s new president, says this is intolerable.
“We want to be stronger, better and faster in the trans-Pacific, and we want to be America’s leading airline in the trans-Pacific,” Carter told CNBC in an interview here during the International Air Transport Association’s annual meeting. “Ultimately… our real goal is to be the world’s leading airline, which is a pretty audacious goal.”
Carter, who was promoted in March, said some of that money will come from a joint venture between Delta Air Lines and Korean Air, which is merging with Asiana Airlines.
Delta Air Lines had net income of more than $5 billion last year, compared to United Airlines’ profit of about $3.35 billion. But when it comes to trans-Pacific operations, Delta’s smaller network generates just $2.79 billion in revenue, compared to United’s roughly $6.89 billion, according to company filings.
Transpacific flights are often very profitable, with long-haul flights expensive and planes with dozens of premium seats.
Both airlines are adding new routes. Earlier this month, Delta Air Lines launched nonstop flights between Los Angeles and Hong Kong. Meanwhile, United Airlines is planning nonstop flights between its San Francisco hub and Sapporo, Japan, targeting demand from premium skiers.
Delta Air Lines and United Airlines account for most of the profits in the US airline industry.
Delta Air Lines has spent much of the past two decades shaping America’s luxury airline, from luxury lounges to lucrative alliances with the United States. american express.
United Airlines has launched its own campaign using similar tactics, including major investments in technology, a large aircraft order and an international network connecting new destinations from Mongolia to Croatia to Greenland.
The US air travel market, the world’s largest, is mature and has little room for significant annual growth. “When we think about the future, it’s all about international flights,” Delta’s Carter said.
United Airlines CEO Scott Kirby said Sunday that he is pleased with Delta Air Lines’ ambitions.
“I have a lot of respect for Delta Air Lines and what they’ve done, and I take it as a great compliment that they’re starting to recognize that they’re competing with us and that they’re a concerned peer,” Kirby said on the sidelines of the same meeting.
When asked what he wanted to defeat Delta, Kirby answered, “Everything.”
Carter said in an interview that Delta cannot rest on its laurels.
“We always have to be hungry to win and I say that because I know United played against us and reproduced the playbook a little bit,” he said. “Bring them.”
