Delta is as Confident as Ever

While some rivals stumble, Delta reported strong demand. The airline's president also commented on loyalty program changes and the decision to hire Tom Brady as a strategic advisor.

Dear readers,

Few airline executives can command an audience like Delta president Glen Hauenstein. He makes cogent arguments about Delta's strengths, while occasionally taking barbed yet polite swipes at competitors. Sure, he spins in his airline's favor, but rarely far enough to flag my internal b.s. meter.

Hauenstein was in classic form Thursday at the Morgan Stanley 11th Annual Laguna Conference, telling investors that, while other airlines might falter amid overcapacity, Delta should be fine, because its premium global strategy is durable. He also defended changes Delta made to its loyalty program that make it tougher for many customers to qualify for elite status or use a lounge. Only once did I wonder if Hauenstein’s heart wasn't in an answer, when he gave a lukewarm, p.r.-style response to a question about why former American football star Tom Brady joined Delta as a strategic advisor.

Let's examine some of Hauenstein's talk, including commentary on guidance, demand, the competitive landscape, loyalty, and yes, Tom Brady. Paid subscribers should read on for all the details.