Leading air carrier,
Delta Air Lines Inc.
) 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
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
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
Delta which operates with other carriers like
Southwest Airlines Co.
United Continental Holdings Inc.
JetBlue Airways Corp.
) has a Zacks #2 (Buy).
DELTA AIR LINES (DAL): Free Stock Analysis
JETBLUE AIRWAYS (JBLU): Free Stock Analysis
SOUTHWEST AIR (LUV): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
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