Yahoo Finance Delta (DAL) to Keep Middle Seats Vacant Through Mar 30, 2021
Shares of Delta Air Lines DAL have declined 15.9% since the beginning of March compared with its industry’s 8.4% decrease.
The disappointing price performance is due to the havoc wreaked by coronavirus on the aviation space. With air-travel demand plummeting due to the pandemic, passenger revenues at Delta plunged 68% in the first nine months of 2020. Notably, Delta incurred a loss in each of the first three quarters of 2020.
To encourage people to resort to air travel, airlines including Delta, currently carrying a Zacks Rank #4 (Sell), have been keeping their middle seats vacant. In line with its focus on safety, the carrier recently announced that it will continue to block the middle seats on its flights through Mar 30, 2021. Previously, Delta had blocked middle seats until Jan 6, 2021.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The move sets Delta apart from other airline players, most of which either aim to do away with blocking the middle seats much earlier or already lifted the protocol. Southwest Airlines LUV decided not to block the middle seats onboard post Nov 30, 2020. Notably, blocked middle seats induced a substantial loss of revenues for this Dallas-based carrier in the September quarter. Meanwhile, management at JetBlue Airways JBLU no longer guarantees that the middle or adjacent seats will be left unoccupied. JetBlue will operate its flights at full capacity from Jan 8, 2021. American Airlines AAL has already been operating flights at 100% capacity since July.
Per a Reuters report, Delta is pinning hopes on people’s willingness to pay more for extra space. This will help the carrier make up for the revenues lost by blocking the middle seats. According to Delta’s chief customer experience officer Bill Lentsch, “Some customers are still learning to live with this virus and desire extra space for their peace of mind”. However, only time will tell whether Delta’s policy of blocking the middle seats and aim for premium revenues pay off.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
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
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
