Delta Airlines Executive Summary

There are two strategies airlines should adopt to improve their chances of being consistently profitable. The first is entering fuel supplier’s industry. In 2011, fuel cost accounted for 32% of the airline industry’s revenue. As fuel prices fluctuate up and down so do airlines’ profit margins. By entering/investing in their supplier’s industry they can exploit low fuel prices and increase their profitability. Delta Airlines used this strategy, investing $150 million in oil refineries and taking over their fuel production (Blockhin, 2015). The second strategy involves creating brand loyalty. As of now consumer’s decision are driving by price rather than brand loyalty. Airlines need to alter their image by enhancing customer experience, creating