Leading air carrier, Delta Air Lines Inc. (DAL - Free Report) has announced that it will allow more flexibility onboard by introducing the usage of portable electronic devices below 10,000 feet. Delta’s all aircraft have undergone the carrier-defined PED tolerance testing to ensure that passengers can safely use their devices in Delta flights. The company is awaiting Federal Aviation Administration’s approval for the usage of portable devices such as e-readers, tablets, and smartphones in flight mode during taxi, takeoff and landing in over 570 mainline domestic aircraft.
We believe the company’s efforts to enhance the traveling experience would lead to more market traction and add to its market share gains. The company already beefed up one of the largest Wi-Fi enabled fleet with around 800 aircraft. Other perks such as personal on-demand entertainment at every seat on all long-haul international flights, real-time baggage tracking, real-time customer service through Twitter, sightseeing map applications Fly Delta app, including Glass Bottom Jet and flat-bed seating have also added to the company’s growth going forward.
Delta is progressing well on improving ancillary revenues by adding features to its services as well as introducing products to improve passenger satisfaction and experience, both in air and on ground. In an attempt to enhance its fleet structure, amenities, products and technological base, Delta aims to invest $2.0–$2.5 billion annually, over the next five years. The company has inaugurated Terminal 4 at New York's John F. Kennedy (JFK) International Airport. In the coming months, Delta will continue to upgrade facilities at the JFK hub, along with investment of $229 million to renovate Terminal 5 at Los Angeles International Airport. The company also plans to start the Sky Deck at the Delta Sky Club in Atlanta.
We expect Delta to remain profitable as it continues to reap benefits from the investments made to improve operating efficiencies and customer experience. This year, the company is expected to generate higher revenues than last year based on better service offering, capacity discipline and customer-focused initiatives.
Delta which operates with other carriers like Southwest Airlines Co. (LUV - Free Report) , United Continental Holdings Inc. (UAL - Free Report) and JetBlue Airways Corp. (JBLU - Free Report) has a Zacks #2 (Buy).