Delta Air Lines makes strong comeback, overtaking its traditional rivals

DELTA Air Lines is moving more auto parts, mail and salmon in the bellies of its passenger aircraft to stay competitive.

The cargo operations produce US$1 billion in annual sales and profit margins have topped 50 per cent because goods are flown on jets with fare-paying passengers, reports Bloomberg.

The second-biggest carrier is said to be benefiting from a wider network after its 2008 purchase of Northwest Airlines, new markets and improved on-time performance. With the merger done, Delta is expanding in cargo and United Continental Holdings (UAL) finishes its own merger integration while American Airlines' parent AMR Corp (AAMRQ) reorganises itself in bankruptcy court.

Delta surpassed United, the world's biggest airline, in cargo tonnage in July as the carrier meshes former United parent UAL Corp and Continental Airlines Inc. The Atlanta-based carrier's cargo was up 1.1 per cent in September while United's fell 6.4 per cent and American's slid 1.2 per cent.

Delta is also hauling 50 per cent more mail for the US Postal Service than a year earlier after American exited that segment, and instead struck accords with carriers such as Emirates to reach countries it doesn't serve with its own jets. Delta is rumoured to be working on five new interline deals with partners.

One of Delta's advantages over American and United may be timing. American is going through bankruptcy. Delta filed for court protection in 2005, blocked a US Airways takeover in January 2007 and exited Chapter 11 about three months later.

Also in the past for Delta are the challenges that accompany the combination of two separate airlines, a process still under way at United after the 2010 merger with Continental.

After buying Northwest in 2008, Delta chief executive officer Richard Anderson sold the carrier's Boeing 747 freighters and focused on the business of loading freight cargo in jetliners' bellies.