Delta and United leave other airlines behind

In the United States, airlines seem to fall into two groups. Delta Air Lines and United Airlines make a lot of money. And then there’s everyone.

These two airlines have gotten a head start in recent years after making some big bets. They expanded their loyalty programs and shifted to selling more first and business class seats. And they operate many international flights.

This has largely paid off. Delta and United have generated most of the industry’s profits since 2022. And some experts believe their lead is only growing.

“It’s kind of the current paradigm of the industry,” said Tom Fitzgerald, an airline industry analyst for investment bank TD Cowen. “I think the divergence is going to become more and more pronounced every year.”

Last week, Delta said it earned more than $1.4 billion between July and September, an 11% increase from the same period a year earlier. United said Wednesday it earned $949 million in the third quarter.

Both airlines benefited greatly from increased revenue from loyalty programs and the sale of premium seats.