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Delta Air Lines Forays into New Skies, Adds Flight to Scotland

In tune with its plans to expand operations, Atlanta, GA-based Delta Air Lines DAL launched non-stop flights between New York and Edinburgh. The first flight (DL 409) of the year-round service from the John F Kennedy airport landed at Edinburgh on May 27.

In a bid to improve the flying experience for passengers, Delta is initially operating additional flights on The Boeing Company’s BA 163-seat 757-200ER jets, which are equipped with modern facilities as well as Wi-Fi. However, with a busy summer season ahead, Boeing’s wide-bodied 210-seat 767-300ER will also operate on the route from Jun 8 to early September. This summer is going to be exceptionally busy as highlighted by the Airlines for America (“A4A”). The trade association has predicted that the June-August period will be the busiest of all times for American carriers with approximately 231.1 million passengers flying by various U.S. carriers.

Delta’s move to add Scotland to its network is a prudent one as the U.S. is the top inbound tourism market to the country. Meanwhile, Delta’s move to launch flights between New York and Edinburgh will intensify competition in this transatlantic route as American Airlines Group AAL and United Continental Holdings UAL already connect the cities. This is likely to result in downward revision of fares. We expect investors to keenly wait for updates on Delta’s latest expansion initiative.

Zacks Rank & A Key Pick

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

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DELTA AIR LINES (DAL): Free Stock Analysis Report
 
SKYWEST INC (SKYW): Free Stock Analysis Report
 
BOEING CO (BA): Free Stock Analysis Report
 
UNITED CONT HLD (UAL): Free Stock Analysis Report
 
AMER AIRLINES (AAL): Free Stock Analysis Report
 
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