Why Delta Keeps Climbing

The measure of a great company culture is not how leadership behaves in good times - any organization can give the perception of exceptionalism with strong financial tailwinds - but whether they stick to stated values when times are challenging. The COVID pandemic has exerted devastating impact on several industries, most notably travel and tourism. Restaurants have converted to take-out, hotel rooms are dark and airplane seats remain unfilled. Airlines have been profusely bleeding cash with domestic load factors averaging 54.7% in June; in order for a flight to be profitable, a plane must leave the gate 75-85% full. The industry has a notorious reputation for leaving culture on the Jetway when facing financial turbulence.

One major US airline has determined that staying true to its values during the pandemic is more important than short-term financial results, and is betting its future on putting employees and passengers ahead of shareholder expectations. During an interview last month on NPR’s All Things Considered, Delta Air Lines CEO Ed Bastian said, “We believe that taking care of safety of our customers, as well as our people, is more important than the profits that we forgo by filling up every seat on a plane.”

The proof of this philosophy is in the actions Delta continues to take in response to feedback from employees and customers. Adherence to the airline’s onboard mask mandate is non-negotiable - 240 people have been placed on Delta’s no-fly list for refusing to comply. Middle seats will be blocked through January 2021, meaning every flight will continue to operate at a loss. Cabins receive an electrostatic disinfectant spray treatment between each flight. Purell hand sanitizing stations are being placed outside every lavatory on every plane. Passengers are provided clear pre-flight communication with expectations about behavior and protocol.

All of these safety measures are layered into the service proposition for passengers rather than in spite of it. For years, under the leadership of Mr. Bastian, Delta has been focused on strengthening its reputation with people. Enhancements were added to the onboard experience based on dialogue with both employees and customers. As a result, despite not being the largest US airline, Delta outperformed its competitors in 2019 in ALL key financial performance metrics including load factor, cost per available seat mile and yield, and total profit. $1.6 billion of that profit was shared with employees - the equivalent of two months of pay - surely something that has been helpful as the economic impact of the pandemic set in.

I had two personal experiences that highlight the commitment Delta keeps to its vision of being “the world’s most trusted airline.” The first example is from the perspective of an employee. Last year, I was returning home from a business trip to the Middle East. On my 10.5 hour flight from Amsterdam to Seattle, I had the pleasure of striking up a conversation with the Purser who is a 35-year veteran in the industry. I asked Kim why customer service seems to be so much better on Delta than other major US carriers. Kim’s response was simple: “Leadership listens.” She then went on to share stories of being invited to attend employee focus groups where change resulted from the conversation, being able to engage directly with company senior executives and referencing that Mr. Bastian flies Economy class when he travels. Kim told me she and her colleagues felt valued, which directly translated to the passenger experience.

The second example is quite simply the best customer service event of my life. Three years ago, I was just beginning heavy travel in a new role with my company but had not yet qualified for frequent flyer status. Combined with an international vacation, I flew more than 20,000 miles in just six weeks. The day after my return home from vacation, I had to make an emergency trip to California just in time to see my father before he passed away from complications of cancer. Immediately after that trip, I had to fly across the country for work. Because I changed my ticket, I could only book a seat in Basic Economy. My emergency exit row window seat turned into a middle seat at the back of the plane, the WiFi did not work for the first three hours of a four hour flight, and the flight attendants ran out of food options by the time they reached our row. I was exhausted, I was emotional and I was frustrated. I sent a note through Delta’s website while still on board the plane (during the one hour WiFi worked) referencing that I was not a Medallion member but that when flying as much as I had in a short period of time and for the reasons I was traveling, the little things make a big difference. I figured that note would go into the internet ether…

When I touched down in Detroit on my return trip, I had a voicemail from an Atlanta number. The message was from Angela in Customer Care. She apologized for my experience, assured me my comments would be shared with the operations team and told me she would contact me the following day. Sure enough, I received an email from Angela the very next day. Not only did she reference my specific complaints and credit my SkyMiles account, Angela also expressed sympathy for the passing of my father. I was floored by the personalized communication.

One week after I returned home from my business trip, we discovered an unexpected package on our front porch. Puzzled as to what it could be, my jaw dropped when I opened the package. Inside, there was a large box from Dean & DeLuca wrapped in a Delta ribbon. The attached card read, “With our sincerest condolences, Angela and the Customer Care Team.” I sat down at our dining room table and cried. That Angela would have the initiative and the empowerment from her leadership to make such a gesture based on a passing comment in a complaint from an everyday traveler spoke volumes about the culture instilled in the employees at Delta.

Ever since that day in November 2017, I have been a committed Delta flyer. As my work-related travel continued to accelerate, that commitment led to tens of thousands of dollars in revenue for the airline, all traced back to one act of sincere kindness. Certainly, not every interaction since then has been perfect, but Delta’s dedication to consistently maintaining its values - in the best (2019) and the worst (2020) of times - is demonstrative of the impact of leadership that understands the importance of culture on the long-term success of the organization. Despite the current, forceful headwinds, if Delta continues to focus on people over profits, it will keep climbing.