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Delta Air Lines (DAL) Set to Expand Footprint in Scotland

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Just weeks after commencing service of the New York–Edinburgh, Scotland flight, Delta Air Lines Inc. (DAL - Free Report) announced the introduction of a New York–Glasgow route to widen its presence in Scotland. The new route is expected to be launched on May 25, 2017. Flights will be operated in conjunction with Delta Air Lines’ partner, Virgin Atlantic Airways.

The new route will be the only one connecting Glasgow to New York. We believe that being the first mover in this space, Delta Air Lines stands to benefit immensely as Scotland is increasingly becoming a popular global tourist spot. On the other hand, many Scottish businesses will be able to travel to the financial capital of the world easily.

In a bid to improve the flying experience for passengers, Delta will be operating flights on The Boeing Company’s 164-seat 757-200ER jets that are equipped with modern facilities as well as Wi-Fi.

Competition

The U.S. is the top inbound tourism market to Scotland and thus, other airlines are likely to follow suit, widening their own network in the country. Delta’s decision, last month, to launch flights between New York and Edinburgh has intensified competition for this transatlantic route as American Airlines Group (AAL - Free Report) and United Continental Holdings (UAL - Free Report) already have flights connecting the two cities. Should other players add new routes to Scotland, we expect a downward revision in fares, going forward.

Zacks Rank

Delta Air Lines currently carries a Zacks Rank #3 (Hold). Investors interested in the airline space may consider SkyWest, Inc. (SKYW - Free Report) which sports a Zacks Rank #1 (Strong Buy).

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