Delta Keeps Producing

While I question the reason for the airline's keynote speech at the Consumer Electronics Show, I commend it for its financial results. Delta had a nice 2024 considering the competitive dynamics.

Dear readers,

After watching Ed Bastian's Jan. 7 keynote at the Consumer Electronics Show in Las Vegas, in which he sought to position Delta as a technology innovator and early A.I. adopter, I began to wonder if this might be the airline’s “the emperor has no clothes” moment. I am not sure the company has the technological prowess it professes.

Bastian tried to channel Steve Jobs in front of mostly adoring fans at Sphere, mixing anecdotes about the heroism of Delta employees with news about products like Delta Concierge (“a digital tool that uses generative A.I. to create seamless and personalized moments”), a partnership with Uber, and updates to in-flight entertainment, including a YouTube partnership. None of it was groundbreaking (even if the crowd cheered) — Delta already has a partnership with Lyft, and carriers often make changes to in-flight entertainment without bragging about it at the world’s biggest tech trade show. And while the A.I concierge could be cool, it’s not clear how much it will change the travel experience. I think some of the stuff outlined earlier this month — like better way-finding at airports — is possible without A.I.

Like many of you, I am confused by two things that were apparent in Las Vegas — Bastian’s desire for people not to think of Delta like an airline, and his yen for the limelight. Also, like many readers, I wonder if Delta is spending so much effort polishing its brand (and its CEO’s image) that it is losing sight of its No. 1 job (outside of safety): shareholder returns.¹ Delta has led the industry in profits for a long time, but I question if earnings may slip amid this strategy shift and newfound competition with United.

Let’s examine Delta’s fourth quarter for early signs of that.