By William Cox
Delta Airlines (NYSE stock symbol DAL), which is valued at $32.67 billion, ranks 2nd in ESG performance in a comparative study of 18 airlines by Yieldrive AG, Switzerland.
The Yieldrive study uses AI to translate the financial impacts of human ESG (Environmental, Social and Governance) factors into Dollars and Cents.
In particular, DAL has developed into an ESG mover since 2017:
| ESG Area | Q4 2017 | Q4 2020 | Q4 2023 | Top Performance Areas (examples) |
| Environmental | 8.31 | 14.24 | 22.04 | Environmental management systems; control of energy expenses; digitalization |
| Social | 4.22 | 17.60 | 22.56 | H&S, affordability of service; stability/growth of customer base; training; strengthening corporate culture |
| Governance | 4.66 | 13.11 | 22.10 | Few fines paid to regulators; board oversight processes |
| Financial | -18.00 | -73.00 | 36.00 | Net income; gross margin |
| Total | -0.40 | -14.03 | 22.83 |
Note: Scores are on a 200-point scale of -100 points to +100 points. This allows to plot good and bad ESG performance in detail. Scores are calculated using Yieldrive’s AI, drawing data from credible news sources, annual and ESG reports submitted to regulators. It covers “hard” performance numbers as well as public/investor sentiment.
DAL proved to be effective in employing ESG to impact its financial operating results. In Q4/23, ESG projects drove 39.16% of its revenues and 45.34% of its profit margins.
Tight environmental impacts management and investments in digitalization were among the the drivers of environmental efficiency management.
Effective health and safety management as well as training programs supported operating efficiency. A high score in marketing effectiveness helped the airline’s top line, among other factors.
The Yieldrive analysis covers 120 ESG and 24 financial performance areas to achieve a balanced assessment between ESG and actual financial results.
Yieldrive is an AI-driven fintech company which calculates the financial impacts of ESG on companies on a quarterly basis. These data are for equity research purposes and do not in any way constitute buy or sell recommendations.
Dr. William Cox is a co-founder and board member of Yieldrive AG in Zug, Switzerland.