Back to top

Analyst Blog

The stock price of Delta Airlines Inc. (DAL - Analyst Report) remained mostly indifferent to the news that the carrier is expanding its operations from some of the west coast markets. The Atlanta-based carrier announced that it will launch a non-stop daily service from Seattle to San Francisco and expand its flight counts from Las Vegas and Los Angeles to the eastern coastal city.

Delta will launch six new non-stop flights between San Francisco and Seattle on Mar 29, 2014, and increase it to seven on Jun 5, 2014. Meanwhile, the premier passenger carrier will add two non-stop daily flights between Seattle and Las Vegas and Los Angeles, which will later increase to five and seven daily flights.   

Delta has strengthened its position in Seattle, adding several international routes, which include some of the busiest destinations in the world like Amsterdam, Beijing, Paris and is waiting to get the green light to launch a service to London and Seoul. The new flights will allow passengers in the West Coast to avail these international flights.

Delta’s partner carrier Compass Airlines will use two Embraer SA (ERJ - Analyst Report) E-175 aircraft to provide service between Los Angeles and San Francisco. Meanwhile, SkyWest Inc. (SKYW - Snapshot Report), another affiliate of Delta, will use CRJ-700 and CRJ-900 to operate between Seattle and Las Vegas.

Delta’s archrival United Airlines – the wholly owned subsidiary of United Continental Holdings Inc. (UAL - Analyst Report) – also continues to enhance its operations in the domestic market. The company has added non-stop flights from Chicago to Elmira, State College and Topeka in addition to launching a new service between Indianapolis to San Francisco.

Delta’s operating performance for the month of September has been quite impressive on solid growth in its international market. Domestically, however, the company registered a modest growth.

We believe that enhancing its presence within the country will allow the company to improve its domestic figures. At the same time it will also bolster its international performance by providing connecting flights from the West Coast destinations, which are three of its most popular hubs proving services to the east.  

Delta currently carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
FELCOR LODG… FCH 10.48 +3.56%
OLD DOMINIO… ODFL 63.47 +1.16%
VASCO DATA… VDSI 13.61 +0.96%
AMEDISYS IN… AMED 20.34 +0.89%
FIRSTSERVIC… FSRV 55.87 +0.25%