winginit wrote:tphuang wrote:winginit wrote:Dominant Carrier Market Share by Largest Hub, Seats, 2018
ATL (DL): 78%
DTW (DL): 73%
MSP (DL): 71%
DFW (AA): 84%
CLT (AA): 90%
MIA (AA): 68%
IAH (UA): 77%
EWR (UA): 65%
IAD (UA): 63%
So yes, DL has market share power and influence in their core hubs... just like AA and UA.
This conveniently ignores the fact that DFW/MIA/IAH/EWR/IAD all face competition in catchment area from other airports. MIA is not even profitable for AA (based on their recent earnings calls) due to FLL pricing pressure. IAD is even more of a joke, since DCA is the preferred airport.
... and that's Delta's fault? I'm not saying that DL isn't ATL heavy - it's financially prudent for them to be; but to say that hub market power is the only reason DL is more profitable than AA or UA is ridiculous. They've balanced that concentration in ATL by building up highly competitive hubs like JFK/LGA, LAX, and SEA yet they still turn better profits than their legacy competitors.
Exactly. I posted about this before, but Delta has quite smartly built up complete dominance in 4 hubs with no alternative airport options: ATL, MSP, DTW, & SLC. No other airline can match that, and as a result DL returns higher profits than the other airlines and can still fund expansions in highly competitive LAX, NYC, and lately SEA & BOS.