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Delta to Change Routes Under Trans-Atlantic Network Expansion
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In a bid to expand internationally, Delta Air Lines, Inc. (DAL - Free Report) announced its decision to broaden its trans-Atlantic network for next year’s summer. Toward this end, this Atlanta, GA-based carrier not only announced additional flights but also increased frequencies of some existing ones.
Under the route expansion plan across the Atlantic, the airline behemoth has decided to introduce year-round nonstop flights connecting Tampa Bay, FL, to Amsterdam. The flights, which will be operational from May 23, 2019, are expected to widen the travel options for passengers travelling from the United States to the Netherlands. The new route will be the 11th one connecting Amsterdam and the United States, and the second one connecting Amsterdam and Florida.
To meet surge in demand, Delta also increased the frequency of its service connecting Los Angeles to Amsterdam and Paris. Flights to both these key European destinations will operate on a daily basis from Jun 16, 2019. Additionally, the company has decided to boost its European services from New York’s JFK International Airport next summer. Delta will utilize the upgraded Boeing 777 jets to operate the additional flights connecting Los Angeles and Paris.
Moreover, Delta has added a second non-stop flight on each of the New York-JFK - Paris and New York-JFK- Tel Aviv routes as part of its expansion initiative. We note that this airline company operates flights connecting the United States and mainland Europe with Air France-KLM SA (AFLYY - Free Report) and Alitalia. However, Delta will reportedly stop operating on the Pittsburgh-Paris and Newark-Paris routes after Sep 3 and Oct 28, 2018, respectively.
We note that shares of Delta have outperformed its industry in a year’s time. The stock has gained 26.3% against the industry’s 1.7% decline.
One-Year Price Performance
The announcement of the new routes is an added positive for the stock. Once operational, we expect these latest routes to boost the top line by generating additional traffic.
Notably, Delta is the second major U.S. carrier to announce changes to its international routes in the last couple of days. In a bid to boost its profitability in the current scenario of rising oil prices, American Airlines Group Inc. (AAL - Free Report) recently announced certain route changes. The carrier has decided to strengthen its European footprint by introducing nine new routes next summer. However, it is set to discontinue the unprofitable Chicago-Shanghai route in October. American Airlines cited rising fuel costs as a reason behind this decision apart from intense competition from Chinese carriers.
Shares of SkyWest have soared more than 95% in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Delta to Change Routes Under Trans-Atlantic Network Expansion
In a bid to expand internationally, Delta Air Lines, Inc. (DAL - Free Report) announced its decision to broaden its trans-Atlantic network for next year’s summer. Toward this end, this Atlanta, GA-based carrier not only announced additional flights but also increased frequencies of some existing ones.
Under the route expansion plan across the Atlantic, the airline behemoth has decided to introduce year-round nonstop flights connecting Tampa Bay, FL, to Amsterdam. The flights, which will be operational from May 23, 2019, are expected to widen the travel options for passengers travelling from the United States to the Netherlands. The new route will be the 11th one connecting Amsterdam and the United States, and the second one connecting Amsterdam and Florida.
To meet surge in demand, Delta also increased the frequency of its service connecting Los Angeles to Amsterdam and Paris. Flights to both these key European destinations will operate on a daily basis from Jun 16, 2019. Additionally, the company has decided to boost its European services from New York’s JFK International Airport next summer. Delta will utilize the upgraded Boeing 777 jets to operate the additional flights connecting Los Angeles and Paris.
Moreover, Delta has added a second non-stop flight on each of the New York-JFK - Paris and New York-JFK- Tel Aviv routes as part of its expansion initiative. We note that this airline company operates flights connecting the United States and mainland Europe with Air France-KLM SA (AFLYY - Free Report) and Alitalia. However, Delta will reportedly stop operating on the Pittsburgh-Paris and Newark-Paris routes after Sep 3 and Oct 28, 2018, respectively.
We note that shares of Delta have outperformed its industry in a year’s time. The stock has gained 26.3% against the industry’s 1.7% decline.
One-Year Price Performance
The announcement of the new routes is an added positive for the stock. Once operational, we expect these latest routes to boost the top line by generating additional traffic.
Notably, Delta is the second major U.S. carrier to announce changes to its international routes in the last couple of days. In a bid to boost its profitability in the current scenario of rising oil prices, American Airlines Group Inc. (AAL - Free Report) recently announced certain route changes. The carrier has decided to strengthen its European footprint by introducing nine new routes next summer. However, it is set to discontinue the unprofitable Chicago-Shanghai route in October. American Airlines cited rising fuel costs as a reason behind this decision apart from intense competition from Chinese carriers.
Zacks Rank & Key Pick
Delta carries a Zacks Rank #3 (Hold). A better-ranked airline stock is SkyWest, Inc. (SKYW - Free Report) sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest have soared more than 95% in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>