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Investing in Delta Air Lines: A must-know company overview

Part 3
Investing in Delta Air Lines: A must-know company overview (Part 3 of 14)

Why Delta Air Lines scores highly on customer satisfaction surveys

Delta’s rated number-one by corporate travel buyers

Delta leads in many corporate surveys for customer satisfaction. These annual surveys give management an indication of their service quality as perceived by customers, monitor changes in travelers’ preferred airlines from year to year, and also help customers choose between different airlines. These surveys help companies track their performance and take corrective steps when required. Delta’s leading positions in these surveys could result in improved traffic, as these surveys act as highly reliable air travel recommendations.

Corporate travelers have rated Delta as the leading U.S. airline for the third consecutive year in the BTN Annual Airline survey. Delta has the highest overall score, 3.93 out of 5, and it leads in all categories except overall price value, which Southwest Airlines (LUV) beat Delta in. Delta scored very highly in network partnerships and frequencies and the value of relationships with account managers and sales representatives. Delta beat American Airlines (AAL) with a score of 3.39, United (UAL) with 3.31, Southwest Airlines (LUV) with 3.25, and US Airways (LLC) with 3.19.

BTN Annual Airline SurveyEnlarge Graph

Fortune’s most admired airline in 2014

Delta is among Fortune’s “2014 World’s Most Admired Companies,” and it ranks first among the world’s most admired airline companies for the third time in four years. This ranking for airline companies was based on the quality of management, the quality of products and services, financial soundness, long-term investment value, and global competitiveness.

Delta has worked towards achieving this result by investing in new airport facilities in New York, Seattle, and Atlanta, partnering with Virgin Atlantic airways, Aeromexico, and GL to improve its network, investing in a refinery to contain fuel costs, and restructuring its aging fleet to reduce maintenance costs. Delta has also invested in technology, 24-hour sales support, and customer relationship management systems and has been leading in on-time performance as well. Delta’s stock price increased 319% to $41.87 in June 2014 from $9.9 in 2012.

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