Delta to Connect Seoul and Hong Kong
One of the premier passenger carriers, Delta Airline Inc. (DAL) will launch daily non-stop flights from Seattle to Seoul and Hong Kong. However, the availability of the service is subject to regulatory approvals.
This Atlanta, Ga.-based airline will connect Seattle’s Takoma International Airport to Seoul’s Incheon International Airport from Jun 2, 2014, while Hong Kong’s International airport will be connected from Jun 16, 2014. The tickets for both the destinations will be available from Aug 24, 2013.
Delta already connects Shanghai, Beijing, and Tokyo and with the addition of Seoul and Hong Kong, the carrier will offer services to all the five leading commercial destinations of Asia. Notably, Delta serves 17 destinations across the Asia-pacific primarily through Seattle, Detroit, Los Angeles and its hub in Narita, Japan.
Delta will use The Boeing Company’s (BA) 767-300 extended range (:ER) aircraft with 210 seats for the Seoul route. However, for the Hong Kong route, the company will operate an Airbus 330-200 aircraft having a capacity of 234 seats.
Similar to all Delta trans-Pacific flights, each seat in the plane will have a personal on-demand entertainment system. Meanwhile, the business class passengers will enjoy full-flat bed seats in addition to a four-course gourmet meal. According to Delta, it will serve Seoul and Hong Kong with the strong support of Seattle and Northwest Pacific customers coupled with its strong partnership with Alaska Airline Group Inc. (ALK).
Recently, Delta reported mixed financial results, where earnings beat the Zacks Consensus Estimate while revenues failed to beat the same. Most of Delta’s operating regions reported an annualized revenue gain, while the Pacific region witnessed a 2.1% drop in its top line.
There is no direct flight between Seattle and Hong Kong, a major financial hub in Asia. We believe that Delta is expanding its services in Asia to tap the corporate customers travelling from the U.S. to Asia, which will boost its performance in the pacific region. However, the company will face competition from Asian carriers, Asiana Airlines and Korean Air, which operate daily flights within the same route.
Delta currently carries a Zacks Rank #3 (Hold).Another stock worth mentioning within this sector is U.S. Airways Group Inc. (LCC), which currently carries a Zacks Rank #1 (Strong Buy).
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