Delta Air Lines’ new routes
The deal between Delta Air Lines (DAL) and Korean Air is slowly spreading its wings. The joint venture has given DAL customers access to 80 destinations through Korean Air services and the Seoul-Incheon’s new terminal two.
Delta Air Lines (DAL) and Korean Air announced several new routes that are slated to begin in 2019. DAL will introduce non-stop service from Minneapolis/St. Paul to Seoul-Incheon. Delta also announced non-stop service to Osaka-Kansai, Japan. It is expected that Delta will fly the Boeing (BA) 777-200ER and the 777-300ER on these routes.
The new developments could help DAL to improve its ASM (or available seat mile) and RASM (or revenue per available seat miles) and add more destinations as well. Delta’s CEO, Ed Bastian, said, “Delta’s future is global and adding another nonstop flight to the joint venture’s Seoul-Incheon hub with Korean Air expands on our long-term vision. This will be a great driver of international commerce for the Minneapolis/St. Paul community and the State of Minnesota, as well as benefiting our customers, our employees and our owners.”
Update on DAL’s stock price
The decline in crude oil price has helped Delta Air Lines to gain 2.0% to $55.18 on June 15. The gain in the stock price has helped DAL to trade 2.4% above its 100-day moving average of $53.91.
However, on a year-to-date basis, Delta Air Lines (DAL) stock has fallen 2.8%. Peers Southwest Airlines (LUV), American Airlines (AAL), and JetBlue Airways (JBLU) have fallen 20.3%, 17.8%, and 14.1%, respectively. Analysts are positive on the stock and have a target price of $72.30, which implies a 31% return based on its June 15 closing price. DAL’s 14-day RSI (relative strength index) score of 57 indicates that the stock is neither overbought nor oversold. Investors can indirectly hold DAL via the iShares Transportation Average ETF (IYT), which had 3.4% of its portfolio invested in DAL on June 15.