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3-1 Milestone Three: SWOT Analysis
3-1 Milestone Three: SWOT Analysis
Paige Katz
MKT 500: Marketing Strategies
Professor Teague
October 5, 2023
2
3-1 Milestone Three: SWOT Analysis
Competitive Analysis
I have selected Delta and Southwest Airlines. Both are well known American airline
companies. Delta is the oldest airline in the United States and Southwest is best known for their
lower costs. They both have many key similarities to American but they don’t hold any specific
partnership.
Delta Air Lines Inc. trades on the NYSE under DAL. The current share is 17.4% (“Airline
activity,” 2023). Delta is also an international airline, like American Airlines. They have over
1,000 destinations through 60 countries. Delta airline has a strong commitment to sustainability,
inclusion, and community engagement (“About Delta,” n.d.). Every airline saw an obvious and
severe decrease in profits and growth in 2020. Delta, no exception to that, has been rebuilding
and has progressed to a point that is nearly, if not more, than their pre-pandemic numbers. Last
year, their profitability stood at over $50 million which is about 3 million more dollars than their
2019 numbers. American Airlines has plateaued in net growth from 2021 to 2022, Delta has
increased by almost 270%. Both companies had overtaken their pre-pandemic numbers, but
Delta secured more a more exponential increase. Delta’s brand has a little more momentum.
They hold an idea that people will be willing to spend a little more on tickets if the experience
overall is better ("Benchmark comparison: American Airlines Group & Delta Air Lines Inc.,"
2023).
Their target market includes people looking for comfortable, reliable and safe air travel.
They market towards frequent business travelers and those in the middle to upper class. They
3
3-1 Milestone Three: SWOT Analysis
also offer accommodations to those who need them from food allergies to physical and mental
disabilities. This includes help at the airport and through the plane itself (“Accessible travel
series,” n.d.). There is a comprehensive page on the website detailing what Delta can provide
however, like American Airlines, it is not easily accessible by looking through the website. It had
to be searched for it separately on a search engine.
Southwest Airlines is a newer airline, in comparison, founded in 1971. They are known for
lower prices and hospitality. They trade on the NYSE under the ticker LUV. Southwest is smaller
than Delta and American as they only have 112 locations across just 11 countries. They value
efficiency, sustainability, and hold a deep care for their employees, customers, and work (“About
Southwest,” n.d.). Southwest’s numbers didn’t have quite as much compared to American. They
are competing more with their customer service and prices. However, Southwest saw less profit
loss in the pandemic and had more net growth from 2020 to 2021 than American Airlines saw.
From 2021 to 2022, they did see profit and growth loss, but it was minimal. After the losses of
2019 and the COVD-19 pandemic, Southwest has returned to their typical profit margins
(“Benchmark comparison: American Airlines Group Inc. & Southwest Airlines Co,” 2023). As
mentioned above, American has surpassed their pre-pandemic numbers.
Southwest Airlines target market is the lower to middle class. People looking to travel for
fun without too much extravagance or those who travel frequently. They want to focus on what’s
important to their clients: the destination. They simplify their operation costs to accommodate
the lower cost tickets. That comes at the sacrifice of no reserved seating, no in-flight meals, and
shorter point to point flights. They also make up for this by supreme customer service and
multiple other benefits and memberships. Southwest has an accessible travel info page in their
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