Delta Air Line’s key operating segments and geographic segments
Delta derives 87.2% of its revenue from the passenger segment, 2.5% from the cargo segment, and 10.3% from other sources. Revenue from other sources includes baggage fee, ticket change fees, aircraft maintenance, repair and overhaul, staffing services for third parties, vacation packages, and private jet operations. A breakdown of Delta’s revenue by segments is similar for Delta’s competitors United (UAL) and American Airlines Group (AAL). However, Southwest Airlines (LUV) and Jet Blue (JBLU) have a higher percentage of passenger revenue (LUV with 94% and JBLU with 91%). Delta’s passenger segment revenue growth of 3% in 2013 was partially offset by a decline in the cargo (-5%) and other segments (-1%).
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Delta’s domestic revenue accounts for 65.8% of its total revenue, followed by the Atlantic region (17.1%), the Pacific region (10.8%), and the Latin America region (6.3%).
- Domestic region: In 2013, passenger revenue per available seat mile in the region increased 5% and passenger mile yield increased by 6%, mainly due to improvements in New York airports.
- International region: Growth in the Latin America region was the highest (10.7%), followed by the Atlantic region (1.8%). The Pacific region, however, declined (-2.7%) due to devaluation of the yen.
Delta (DAL) and its competitors, United Continental (UAL) and American Airlines Group (AAG), differ in their geographic segmentation. Among the mainline carriers, Delta has the highest domestic share (65.8%), United (UAL) has the highest share in the Atlantic region (18.6%) and Pacific region (15.1%), and American Airlines Group (AAG)—a combination of American Airlines and U.S. Airways—has the highest share in the Latin America region.
Correction: When we originally published this article, we mistakenly reported that Delta derives 65.8% of its revenue from the passenger segment. We’ve revised this article to indicate that Delta actually derives 87.2% of its revenue from the passenger segment.