Delta has built its business success through an unwavering commitment to its customers and employees. The assertion that our success is due to anything more than the hard work of our people is not only ridiculous, it is offensive.
While we are cooperating with the current inquiry, the simple fact is that Delta has not engaged in any illegal behavior.
So here are the facts:
Industry capacity is rising
Industrywide, the supply of seats has increased every year since 2012 1
So far in 2015, total daily seats available have increased by 87,000 1
Delta has aggressively expanded in many of our most important markets
Delta has grown system capacity 4.7 percent since 2010. 2
By way of example, since 2010, Delta has:
- Expanded its capacity by 100 percent in Seattle
- Expanded its capacity by 49 percent at Los Angeles
- Expanded its capacity by 44 percent at New York LaGuardia
- Expanded its capacity by 35 percent at Chicago O’Hare
Airline fares have been declining
Since 2000 the average fare including fees, has dropped nearly 10 percent when adjusted for inflation.1
Passenger yields – which measure the average fares on each seat for every mile flown – have declined 2.1 percent so far in 2015. Every region has seen a drop in prices.1
- Domestic (1.1 percent)
- Atlantic (0.3 percent)
- Latin (6.6 percent)
- Pacific (9.6 percent)
- System (2.1 percent)
According to the Hopper’s Consumer Airfare Index published in July 2015, last month’s domestic airfare prices were down 7.1 percent year-over-year from 2014.1
Air travel remains a bargain compared to other consumer goods and services
This century, U.S. inflation, personal incomes and many consumer prices have outpaced domestic air fares. Airfares remain a bargain compared with other commodities and consumer goods: since 2000, the average price of a domestic airline ticket has increased about 26 percent, while the cost of jet fuel has risen over 250 percent and the US consumer price index is up 37.5 percent. 1
|Product||% Price Change, 2000-14 (non-inflation adjusted)|
|Walt Disney World||115|
|Disposable income per capita||55|
|Food and beverage||46|
|CPI (inflation rate)||38|
|Air travel (domestic fares and fees)||26|
Airline profits are a recent phenomenon
Since 2001, when the modern era of consolidation began with American Airlines’ purchase of TWA, airlines have lost a combined $43 billion.
Since deregulation, airlines have lost $32 billion.
A healthy, profitable airline industry is good for consumers, employees and investors
Delta and other airlines have been re-investing cash into improving the customer experience, with new aircraft, improved airport facilities and advanced technology. 1
|Year||Capital expenditures (billions)|
Employees are enjoying stability and career opportunities, which in turn helps local economies and fuels job growth.
- Delta employs 80,000 people worldwide.
1 “U.S. Airlines: Allocating Capital to Benefit Customers, Employees and Investors,” Airlines For America, July 6, 2015
2 Delta Air Lines analysis of capacity data