In a bid to expand further, Atlanta, Georgia-based Delta Air Lines (DAL - Analyst Report) recently announced its intention to start operating new flights connecting New York’s John F. Kennedy International Airport (“JFK”) and Boston to Europe. The new flight service will start next year. The airline behemoth intends to start non-stop seasonal service connecting the Dublin Airport and Boston Logan International Airport from May 25, 2017. Delta already operates flights to Dublin from New York-JFK and Atlanta.
As part of its expansion initiatives, the carrier intends to commence flights to Portugal from the same date. Delta Air Lines plans to introduce daily seasonal flights connecting JFK and Lisbon. The carrier is also looking to launch of non-stop flights between JFK and Tegel Airport, thereby resuming operations to Berlin.
The Boeing Company’s (BA - Analyst Report) 164-seat 757-200 jets, which are equipped with modern facilities, will be utilized for the Dublin and Lisbon services, whereas Boeing 767-300 aircraft (225 seats) will be used for the Berlin flights.
Apart from its expansion initiatives, Delta Air Lines was in the news for labor-related issues. According to a Reuters report, the company reached a pay-related “agreement in principle” with its pilots’ union pertaining to a new contract. However, the agreement needs to be cleared by the union leaders before a tentative deal. We remind investors that Delta Air Lines pilots had rejected a tentative agreement last year. Further updates on the progress of the deal will keenly be awaited by investors.
Zacks Rank & Key Picks
Delta Air Lines currently carries a Zacks Rank #3 (Hold). Investors interested in the airline space may consider GOL Linhas (GOL - Analyst Report) and Copa Holdings (CPA - Snapshot Report) . While GOL Linhas carries a Zacks Rank # 2 (Buy), Copa Holdings sports a Zacks Rank # 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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