Delta and United rivalry heats up over lucrative trans-Pacific market
by By The News Digital · The News InternationalDelta Air Lines has set its sights on overtaking United Airlines in the lucrative trans-Pacific market, as competition between the two US carriers intensifies.
Speaking to CNBC during the International Air Transport Association’s annual meeting, Delta president Peter Carter said the airline wants to expand aggressively across Asia-Pacific routes.
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“We want to become stronger, better, faster in the trans-Pacific, and we want to become the leading U.S. carrier” across the Pacific, Carter told CNBC.
“Ultimately ... the real goal is to become the leading global carrier, which is a pretty audacious goal.”
Delta remains the most profitable airline in the United States, reporting more than $5 billion in net profit last year. However, United still dominates the trans-Pacific sector, generating nearly $6.89 billion in revenue from those routes compared with Delta’s $2.79 billion, according to company filings.
Both airlines are now increasing international services with Delta recently launching nonstop flights between Los Angeles and Hong Kong, while United planning to begin flights between San Francisco and Sapporo, Japan.
United CEO Scott Kirby welcomed the challenge and told CNBC he viewed Delta’s ambitions as recognition of United’s strength.
“I take it as a huge compliment that Delta is beginning to acknowledge that they have an equal that they’re worried about and trying to compete with us,” Kirby said.
Carter responded confidently: “Bring ’em on.”