Delta Airlines to Reinstate Barbados Operations - Analyst Blog

Delta Air Lines Inc. DAL is consolidating itself in the Caribbean market with its recently announced non stop services connecting Barbados with both Atlanta and New York. Notably, Delta Airlines is resuming its operation in Barbados after a gap of 3 years. The flights will be operational effective Dec 4, 2014.

Delta Airlines will be operating twice weekly between its New York and Atlanta hubs, connecting Barbados. Scheduled for Thursdays and Saturdays, the flights will start simultaneously from New York and Atlanta. The first one will fly to Barbados and then on to Atlanta while the one from Atlanta will initially land at Barbados before flying to New York.

The Atlanta-based premier carrier will use The Boeing Co.'s BA 737 narrow bodied jets on the route which boast 16 seats in the business class and 144 seats in United Economy, of which 18 are economy comfort seats with additional legroom. Passengers can enjoy television programs from DISH Network Corp. DISH aboard the flight.

Notably, Delta Airlines had started flying to Barbados from Atlanta in 2006. Eventually, it discontinued its services therein in 2011 owing to low demand. This time Delta has strategically connected Barbados with New York and Atlanta to provide passengers access to various cities across the U.S. and around the world from these two major hubs. The Barbados flights add to Delta's extensive presence within the Caribbean community, where it already flies to Aruba, Bermuda, Haiti, St Maarten and Grand Cayman Island.

The Caribbean remains a strong point for Delta's rival JetBlue Airways Corporation JBLU, where the carrier offers non stop service to 25 destinations. Of late, Southwest Airlines also flagged off services to the Caribbeans in a bid to grab market share from JetBlue.

We believe with the U.S. economy improving, the recommencement of service at the island country from two of the most well connected U.S. destinations will increase scope for Barbados-bound traffic, thus boosting Delta Airlines' performance.

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