Delta Air Line’s key operating segments and geographic segments

Teresa Cederholm - Author

Nov. 20 2020, Updated 11:34 a.m. ET

Delta’s 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%).

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.
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Delta (DAL) and its competitors, United Continental (UAL) and American Airlines Group (AAG)(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)(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.


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