In a bid to expand its footprint in Europe, Delta Air Lines (DAL - Free Report) announced plans to introduce more flights connecting the United States and Europe next year.
Apart from strengthening its global footprint, introduction of additional flights should find favor among passengers as it will boost connectivity between the United States and European destinations. For this purpose, the carrier aims to add 780,000 seats in 2020.
In another customer-friendly move, Delta stated that passengers on all trans-Atlantic flights exceeding six and a half hours will enjoy the premium Delta One experience from 2020.
Backed by these initiatives, the company should attract substantial traffic on the new routes, which in turn is likely to bolster its top line.
About the Plan
Delta aims to operate four additional trans-Atlantic flights from Boston next year as part of its expansion plan (transatlantic capacity is expected to be expanded more than 30% next year). This will include new seasonal (summer: May 21-Sep 7) service to Rome, introduction of a second daily flight to Paris apart from additional flights to London-Gatwick and Manchester from Boston. Delta will utilize Boeing 767 aircraft to fly to Paris, effective May 21.
Meanwhile, for the year-round Boston to London-Gatwick and seasonal Boston to Manchester flights (both operational from May 21), Delta will utilize Boeing 757 jets. Delta also intends to extend the current seasonal service between Boston and Edinburgh and Lisbon from May 21, 2020.
Additionally, from Mar 28, 2020, Delta will start operating new daytime year-round flights from New York to London-Heathrow, utilizing Boeing 767 jets. Moreover, as part of the massive expansion (double-digit growth) in international operations from New York’s JFK Airport, Delta aims to operate twice-daily, year-round Tel Aviv flights.
As part of its New York-JFK schedule expansion, this Atlanta, GA-based carrier aims to start new service to Mumbai and Bogota from December this year. Furthermore, the carrier intends to increase the availability of its seasonal service from JFK to European destinations like Athens, Copenhagen and Berlin from 2020.
Delta stated that as part of the expansion plan, the current seasonal service between its hub at Salt Lake City International Airport and London-Heathrow will become year-round from Dec 19, this year. Also, the operating season between Tampa and Amsterdam will be extended in 2020.
Zacks Rank & Key Picks
Delta carries a Zacks Rank #3 (Hold). Investors interested in the airline space may consider Allegiant Travel Company (ALGT - Free Report) , SkyWest (SKYW - Free Report) and China Southern Airlines Company (ZNH - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Allegiant, SkyWest and China Southern have appreciated more than 49%, 30% and 3%, respectively, so far this year.
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