Delta to Expand in Brazilian Skies, Connect Orlando-Sao Paulo - Analyst Blog
Airline behemoth Delta Air Lines DAL has filed for regulatory approval to connect Orlando, FL and Sao Paulo, Brazil. Delta intends to introduce non-stop flights on the route effective Dec 19, 2015 following the approval.
The company intends to operate four flights per week in each direction on the said route in a bid to explore new skies as well as improve customer convenience.
We remind investors that Delta, in an attempt to expand its Latin American network, had announced in 2011, the commencement of codeshare service with Brazilian carrier GOL Linhas Aereas Inteligentes GOL. Delta’s attempt to boost its Brazilian presence will be aided by its agreement with GOL.
Following regulatory approval, we believe Brazilian fliers will heartily welcome Delta’s latest expansion move as it will allow them to connect to one of the premier vacation destinations in the U.S. Delta intends to use The Boeing Company’s BA 767-300 aircraft for its service on the proposed route. The journey from Orlando to Sao Paulo is estimated to be approximately 12 hours long while the return flight should be slightly shorter.
We note that Delta is leaving no stone unturned to expand its operational base through the introduction of new services connecting various domestic and international destinations. The addition of new routes should boost the carrier’s top line sufficiently, going forward.
Zacks Rank
Delta carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is JetBlue Airways Corp. JBLU with a Zacks Rank #2 (Buy).
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