• by Nina Lentini  @Nina_Lentini, October 17, 2007

On Tuesday, No. 3 U.S. carrier Delta Air Lines posted third-quarter profit that more than quadrupled to $220 million, from $52 million a year earlier when it was in bankruptcy. Sales rose 10%, to $5.23 billion.

Delta Air Lines Inc., the No. 3 U.S. carrier, said third-quarter net income more than quadrupled to $220 million, or 56 cents a share. It was the second straight profitable quarter since the airline came out of bankruptcy in April.

The results are the first for the airline's new CEO, Richard Anderson, who took over in September. "I want to thank my Delta colleagues for their efforts in delivering strong improvements to our financial and operational performance," he said.

Like many other U.S. network carriers, Delta has been moving away from the tough domestic market toward the more lucrative international routes, and plans to continue into the fourth quarter, when it will pull 13 planes from its domestic fleet.

Analysts credit business moves like this for Delta's excellent showing on Tuesday, but say its marketing efforts, which began last spring, are succeeding in bringing Delta back as a brand.

Henry Harteveldt, principal analyst at Forrester Research Inc., says Delta's real marketing push begin in the third quarter itself.

"What Delta is doing is positioning the airline in the right way from a marketing standpoint," he says, calling the third quarter an indication that the airline is positioning itself for success. Harteveldt points to social networking efforts such as delta.com/change that invites consumer input, its Sightseer Challenge--a video blog and contest engaging consumers--and a new blog, "Under the Wing."

"They're doing all these things to show John Q. Public that this is not your father's or your grandfather's Delta, that they are serious about changing," he says. "Marketing a product plays a role in how an airline is investing in itself."

Earlier this month, Delta unveiled its first tricked-out Boeing 737-800, with more comfortable coach seating and a digital entertainment system at every trans-Atlantic seat. By the end of May, it plans to have 28 such planes in service. Next month, Delta will begin selling food created by chef Todd English on domestic flights of four hours or more. And, by spring, English meals will be available for purchase on flights of more than 1,025 miles, with his popular snacks on flights of more than 750 miles out of cities including Boston, Atlanta, Chicago, Cincinnati, Houston, Phoenix, Portland, Ore., Tampa, and Las Vegas.

SS&K, N.Y. is Delta's AOR. Delta spent $29.3 million in measured media last year, according to TNS Media Intelligence. In March, it launched a multimillion-dollar TV, radio, print and online campaign, "Change," via SS&K and Modem Media. In April it unveiled its new corporate brand identity, a red "Widget" logo.

Earlier this month, Delta created a temporary lounge on West 57th Street in Manhattan to test some of its new features, including refurbished seats, new menu items and route information. The space will be open through Nov. 10.

"Delta is one of the most marketing-focused of the legacy airlines," says Forrester's Harteveldt. "Against Jet Blue, in particular, Delta is saying the brand does matter. They don't want to be just the name of an airline. They want to take the Delta name and make it something people can relate to as a brand.

"Assuming the economy doesn't decelerate too much, the cost of fuel remains around where it is now and that Delta is able to raise fares without killing demand, they are well positioned for success not only for Q4 but for 2008."