United Airlines and Delta Airlines flights
Sam Hodgson | Bloomberg | Getty Images
RIO DE JANEIRO — Delta Air Lines he is a nation bearer with great profits, but his hungry rival, United Airlinesis much larger over the Pacific. Delta’s new president, Peter Carter, says that won’t stop.
“We want to be stronger, better, faster in the trans-Pacific, and we want to be the best US company” across the Pacific, Carter told CNBC in an interview here during the annual meeting of the International Air Transport Association. “Ultimately … the real goal is to be the best carrier in the world, which is a very good goal.”
Carter, who was promoted in March, said some of that will come from Delta’s business with Korean Air, which is affiliated with Asiana Airlines.
Delta posted a profit of more than $5 billion last year, compared to United’s roughly $3.35 billion. However, in its trans-Pacific business, Delta’s smaller network generated only $2.79 billion in revenue, compared to United’s nearly $6.89 billion, according to company data.
Trans-Pacific flights tend to be highly profitable, with long-haul flights costing more and offered on planes with plenty of premium seats.
Both carriers are adding new routes. Earlier this month, Delta launched nonstop service between Los Angeles and Hong Kong. United Airlines, on the other hand, plans to fly non-stop between its San Francisco hub and Sapporo, Japan – a premium-ski traffic game.
Delta and United are the most profitable of the US airline industry.
Delta has spent the better part of the past two decades establishing itself as the US’s most luxurious airline, from state-of-the-art lounges to lucrative partnerships. American Express.
United launched its own campaign using similar tactics, including massive investments in technology, massive aircraft orders, and an international network with new destinations from Mongolia to Croatia to Greenland.
The US aviation market – the largest in the world – is mature, meaning there is little room for significant annual growth. “Really, when we think about the future, it’s all about international,” Delta’s Carter said.
United CEO Scott Kirby said Sunday he was happy with Delta’s ambitions.
On the sidelines of the same conference, Kirby said he “has a lot of respect for Delta, and what they’ve done, and I take it as a huge compliment that Delta is starting to admit that they have their peers to worry about and are trying to compete with us.”
When asked why he wanted to beat Delta, Kirby replied: “Everything.”
Carter said in an interview that Delta cannot rest on its current laurels.
“We must always be hungry to win, and I say that because I know that United are there to compete with us and they are repeating the playbook a little bit,” he said. “Bring them.”
