RIO DE JANEIRO — Peter Carter, president of Delta Air Lines, discussed the airline's strategy for trans-Pacific expansion during an interview at the International Air Transport Association annual meeting in Rio de Janeiro. Delta aims to become the leading U.S. carrier across the Pacific, with an ultimate goal of becoming the leading global carrier.
Carter identified international travel as the primary focus for the airline's future growth strategy. "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 said. "Ultimately the real goal is to become the leading global carrier, which is a pretty audacious goal."
Delta currently operates a smaller trans-Pacific network than United Airlines. Last year, Delta generated $2.79 billion in trans-Pacific revenue, while United generated approximately $6.89 billion in trans-Pacific revenue. Delta launched nonstop service between Los Angeles and Hong Kong earlier this month, an expansion of its trans-Pacific routes.
Carter stated that Delta cannot rely on its current market position. He acknowledged that United is adopting similar business strategies to compete with Delta. "We always have to be hungry to win, and I say that because I know United is out there competing against us and replicating the playbook a little bit," Carter said. Scott Kirby, Chief Executive Officer of United, commented on Delta's competitive stance. "I have a lot of respect for Delta, and what they have done, and 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.
Delta maintains a joint venture with Korean Air, which Carter stated will contribute to Delta's trans-Pacific expansion. Korean Air is in the process of merging with Asiana Airlines. Last year, Delta reported a net profit exceeding $5 billion. United reported earnings of approximately $3.35 billion last year.