Inside Delta Air Lines’ acquisition of Esfera this week: Was it worth it?

Delta Air Lines put on a great show this week in Las Vegas, and that’s probably an understatement.

The airline kicked off 2025 with its semi-regular appearance at CES, one of the world’s largest consumer electronics shows. But this year’s show was on another level.

Delta has acquired Sphere, the immersive, world-renowned Las Vegas venue that recently hosted a U2 residency.

The event was equal parts product announcement and heavily branded pep rally, and, it’s safe to say, it was unlike any event a U.S. airline has ever hosted.

Outside the Sphere, Delta’s brand and images of its global destinations decorated the famous “exosphere.”

Inside, CEO Ed Bastian took the stage with the kind of pomp, circumstance and multimedia production one might expect when a presidential candidate takes the stage during the final night of a nominating convention.

Viola Davis narrated a video illustrating Delta’s centuries-old history and then appeared in person on stage.

Delta “strategic advisor” Tom Brady made a surprise appearance to tease an upcoming wellness program you’ll see on Delta planes.

Lenny Kravitz even played a set.

There was a virtual fireworks display to mark the airline’s centenary, which sounded, smelled and felt quite real thanks to Sphere’s immersive features.

So did the aroma of hazelnut coffee wafting through the air as a motorcyclist took the stage with an Uber Eats bag to promote Delta. new association with the transportation and delivery services company.

Delta too announced many new thingsdefinitely. Next-generation in-flight entertainment systems and expanded seatback Bluetooth connectivity are coming. Passengers will soon be able to stream ad-free music and YouTube Premium content during the flight. And there’s a new AI “concierge” tool coming to your mobile app later this year.

Ultimately, though, those ads were far less memorable than the spectacle of it all: so great that you’d be forgiven for wondering, “Why?”

In fact, I did just that.

“For us, the opportunity certainly is to be a sincere and beloved brand, which then just puts aside rational thinking,” Delta senior vice president and chief communications officer Tim Mapes told me the morning after the event.

It’s an aspiration Delta executives often repeat: the idea that flying Delta is somehow more than just getting from point A to point B.

“That’s not a high enough bar when you really want to be a world-class brand,” Mapes said. “If you love Apple, and I love Apple iPhones, I don’t really care what functionality Samsung is going to introduce. Because what I really care about is what’s next for Apple.”

A complete Delta brand show

To what extent did the airline’s brand permeate the Sphere? Get this: The on-site bathrooms sported the same Grown Alchemist hand soap found on Delta planes, in its Sky Clubs and Delta One Lounge facilities.

In the Sphere lobby, a museum-like exhibit guided visitors, many of them Delta loyalists, through the airline’s 100-year history.

AvGeeks stopped by to examine the decades-old logos and service kits. The prototype luggage made from recycled airplane metal will likely be a hit once Delta starts selling the bags.

The line of guests waiting to get a free Delta sweatshirt (SkyMiles membership required) rivaled the standard Transportation Security Administration lanes at the airline’s Atlanta megacenter on the Sunday after Thanksgiving.

To be sure, this was clearly Delta’s last attempt to flex its muscles as “one of the leading consumer brands in the country,” as Bastian routinely states. “When you get on a Delta plane, it’s different,” he said. a wall street panel last December.

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Delta leads the pack among US airlines

Some of Delta’s claims also have merit.

The airline regularly ranks at or near the top of data-based rankings of U.S. airlines, according to TPG’s most recent (and highly analytical) report. Best Airlines Report to the most punctual airlines of Cirium analysis published last week.

Delta’s new business-class-only lounges were among the nicest in the U.S. from the start. moment the portfolio debuted. Heck, its traditional Sky Clubs are much better than other national airline brand outposts, and that’s just part of a $15 billion investment in more premium experiences the airline said it’s made over the past 15 years.

Today, holders of Delta’s co-branded American Express cards earn nearly 1% of America’s gross domestic product, a figure the airline regularly cites as proof of success in its pursuit of high-spending “premium” travelers. .

From 2023, About 40% of the American population had a SkyMiles number in their name.

And in recent years, the airline has largely led U.S. airlines in profitability, although lately United Airlines has closed the gap significantly.

“I think Delta has done an excellent job, in multiple ways, of creating a premium brand and a great customer experience,” Thomas O’Toole, a former United Airlines executive and associate dean at the Kellogg School, told me in an article. of Management from Northwestern University. interview last year.

“United,” he added, “…is on a really good path.”

United closes the gap

In fact, there are some areas where the Chicago-based airline could, in fact, argue that it has been further more innovative than Delta in recent years.

Take Delta’s big Bluetooth announcement this week. The technology is destined for the future, with the Airbus A350-1000 and A321neo aircraft just delivered, in addition to the Boeing 737 MAX 10, once it is certified by the Federal Aviation Administration.

United already announced an expansion of more than 800 aircraft with Bluetooth-enabled backup displays in 2023.

It also has a fully harmonized, long-haul and lie-flat business class product. Meanwhile, Delta continues to fly its decades-old Boeing 767s on transoceanic routes with seats that, frankly, have seen better days. (Of course, Delta could easily point out that United has continued is steps in submitting plans for free fleet-wide Wi-Fi service).

It’s not an easy feat

More broadly, though, becoming the kind of beloved brand that Delta executives talk about is a tall order for an airline, argued Michael Lewis, a marketing expert on the faculty of Emory University in Atlanta.

“When I think about ‘fandom,’ my gold standard is always sports. If you know someone who’s a Dallas Cowboys fan, they’ll probably tell you within the first five minutes,” Lewis said. “If you know someone who is loyal to Delta, it probably won’t come up in the first five years.”

Mapes disagrees, pointing to the labels on Medallion bags that prominently display both the AvGeeks and Delta’s Road Warriors.

“People identify with the value of badges on airlines,” Mapes said. “If you doubt it, look at the briefcases of most travelers.”

Still, in Lewis’ view, airlines can inherently test the patience of their “fans” when operational problems occur. Look no further than the thousands of flights Delta canceled in the days following a third-party technology outage in July: a crisis From which the airline has learned “many, many, many” lessons, Mapes said this week, including things that “we must be careful never to repeat.”

By Delta’s own admission, its standards are a high bar to surpass, especially when weather complicates travel or some other unexpected obstacle arises. But Mapes said it’s a welcome standard for its 100,000 employees, whom the company honored in one of the most sentimental tributes in the Sphere this week.

“Who wants to bust their butt and be average? Who wants to bust their butt and be ‘somewhat good,'” Mapes said. “We want to make sure they feel part of something that is world class and best in class.”

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