Sweet Delights for Delta Economy Fliers - Analyst Blog

In an effort to enrich customer experience, Delta Airlines Inc. DAL has upgraded its Economy Comfort seating in all transcontinental flights operating from New York's John F. Kennedy Airport to Los Angeles, San Francisco and Seattle.   

Delta Economy Comfort passengers will now receive a complementary pillow and blanket on their seats, when they board their flight. On boarding, they will also receive sleeping kits, which will include eye shades and ear plugs.   

The frills do not just end there. Passengers will also get free Luvo snack wraps and a complementary bottle of water during the journey. Additionally, Luvo frozen yogurt bars will be given to passengers as a mid-flight snack except in flights that will leave the west coast after 9 pm.

Economy Comfort fliers on Delta's transcontinental routes already receive early boarding privileges and seats with extra legroom along with complementary beer, wine and spirits.

According to the U.S. Bureau of Transportation Statistics, New York–Los Angeles is the highest revenue generating domestic route. Traditional carriers continue to invest in customer comfort within this lucrative route, particularly in the high-end business class segment.

Delta has ensured that it does not fall behind in this regard. The carrier has constantly invested in air and on ground to enhance its customers' flying experience. Atlanta-based Delta already provides lie-flat seats for its business elite customers for flights operating between New York and Los Angeles and will soon introduce a fleet of three new Boeing 757's to expand customer comfort within all flights on the same route.  

Delta continues to fight competition from American Airlines Group Inc. AAL and United Continental Holdings Inc. UAL to expand market share within the route. Reportedly, JetBlue Airways Corp. JBLU is also set to start premium transcontinental service from June 2014, thus heightening the competition.  

We believe this is a strategic move by Delta to lure more customers so that despite keeping fares unchanged, the company is able to garner additional revenues from these routes. Notably, the company's May 2014 operational performance was quite impressive owing to strength in the transatlantic markets, which paves the way for incremental opportunities within these regions going forward.

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

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