Delta Aims to Boost Asian Presence Through Flights to Seoul
Delta Air Lines DAL intends to launch its first-ever nonstop service from Salt Lake City International Airport to Seoul-Incheon International Airport on June 12, 2025. This will be the sole direct flight linking Salt Lake City to Asia. Once the route becomes operational, it will provide seamless connections to key destinations across Asia for travelers throughout the Mountain West and Southwest regions in the United States.
The route, after being launched, will be Delta’s fifth direct U.S. route to Seoul. DAL will utilize an Airbus A350, equipped with all modern amenities, to operate on the route. Through this route, DAL and partner Korean Air will provide access to Seoul from 14 U.S. gateways. The addition of this route to DAL’s network will strengthen its position as the largest long-haul foreign carrier at Incheon.
Flights on the route, once operational, will operate year-round, on a daily basis. The decision to launch a flight connecting Salt Lake City and Seoul is a prudent one as both destinations are attractive tourist spots and the route is likely to invite substantial traffic. This should boost DAL’s top line as air-travel demand is buoyant and likely to be so in 2025 as well.
Price Performance of DAL
Driven by upbeat air-travel demand, DAL’s shares have gained 28.1% year to date, outperforming its industry’s 25.8% growth.
Image Source: Zacks Investment Research
Zacks Rank
Delta currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the industry may consider stocks like C.H. Robinson Worldwide CHRW and Air Transport Service Group ATSG.
C.H. Robinson Worldwide currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHRW has an expected earnings growth rate of 25.2% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.3%. Shares of CHRW have risen 47.7% in the past six months.
ATSG carries a Zacks Rank #2 (Buy) at present and has an expected earnings growth rate of 12% for the current year. The company has a mixed track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missing twice. The average miss is 7.7%. Shares of ATSG have climbed 18.5% in the past six months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report