Delta to Expand Seattle Network

Zacks

In an attempt to strengthen its network, Delta Air Lines Inc. (DAL) has announced new daily non-stop flights from Seattle to popular ski and beach destinations across the Americas. Delta is eyeing the maximum number of international destination flights from Seattle, higher than any of its peers.

The company’s new skiing destinations include Spokane, Calgary and Bozeman. Delta will fly to Spokane and Calgary effective Nov 3, 2014 and to Bozeman, Dec 20 onward. Delta plans to operate four daily flights to Spokane using two Bombardier CRJ-700 aircraft, while the two daily flights to Calgary International Airport will use Embraer SA’s (ERJ) E-175 aircraft. The daily seasonal flight (till Jan 4, 2015) and thereafter the weekly Saturday flight (Jan 10 to Mar 28) to Bozeman will also use the same E-175 aircraft.

Additionally, the carrier will use The Boeing Co.’s (BA) 757-200 aircraft to Kahului airport in Maui, which is the second largest island in the Hawaii. Delta’s other beach destinations include Los Cabos and Puerto Vallarta in Mexico, both of which will get four daily flights till Jan 10, 2015, followed by Saturday evening flights from Jan 17. The carrier will use the Airbus A-319 for its Mexican destinations.

However, all the new international destinations are awaiting foreign government consent, while the U.S. government approval for Puerto Vallarta’s service is still pending.

This premier passenger carrier has fortified its position in Seattle by adding several international and domestic routes, and is building the coastal city as a key element of its Pacific network restructuring. The carrier is expected to start service to Seoul and Hong Kong from Seattle on Jun 2 and 16 this year, respectively.

The carrier connects some of the busiest destinations in the world like Amsterdam, Tokyo, Beijing and Paris from Seattle and has recently launched service to London-Heathrow airport. Additionally, Delta offers flat-bed seats in BusinessElite on every international destination along with on-demand entertainment across all seats, thus adding to passenger comfort and value.

We believe these new destinations will enrich Delta’s Seattle network, making it one of the strongest carriers in the city. Passengers traveling to these destinations can access Delta’s extended presence, which is set to rise to 26 by the end of this summer.

However, Delta can face stiff completion from Alaska Air Group Inc. (ALK)-owned Alaska Airlines, which currently operates the most number of non-stop flights from Seattle and is expected to increase its departures by 11% from 253 to 280.

Delta currently carries a Zacks Rank #1 (Strong Buy).

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