Executive Summary - Delta Airlines

Delta Air Lines Inc. began in 1924 as The Huff Daland Dusters, a crop dusting and airmail operation. Delta first provided passenger air travel in 1934, and official became Delta Air Lines Inc. in 1945. Today the company operates scheduled air transportation for passengers and cargo throughout the United States and around the world. The company’s global route network gives Delta a presence in every major domestic and international market. Delta and its subsidiaries are headquartered in Atlanta, Georgia, but are incorporated under the laws of the State of Delaware. As one of the first passenger airlines in the industry, Delta developed deep customer loyalty through the amazing customer service that Delta utilizes as a competitive advantage. Delta’s business and operations are highly dependent on the price of jet fuel. Delta Air Lines leverages fuel hedging which is intended to reduce financial impacts from the volatility of jet fuel prices. An increase in jet fuel costs, including in the cost of crude oil, can potentially create an unfavorable effect on Delta’s operating performance.

Currently Delta Air Lines is a leading domestic and international air travel supplier, with a transportation network with success dependent on access to gateway airports and domestic hubs. By operating through hubs and gateway airports, Delta offers optimal travel options for its customers. While domestic operations are subject to competition from traditional network carriers and discount carriers, Delta’s international success relies on alliances with foreign carriers in order to improve access to international markets and enable expansion. Delta increased its ability to sell international transportation through mergers and acquisitions of competitor airlines, such as, Pan Am, Aermexico, Air France and Korean Air. The company also entered contractual agreements with the European Union, giving Delta the ability to fly into the London-Heathrow gateway airport. Delta’s