In an attempt to attract the supporters of the Bowl Championship series, mega airline carrier, Delta Air Lines, Inc. (NYSE:DAL) has added numerous flights connecting the cities involved in the tournaments. The popular American football tournament takes place in the first week of January.
Notably, the Bowl Championship series includes five bowl matches involving the top 10 ranked teams in the NCAA Division 1 Football Bowl Subdivision. The top two participating teams compete in the concluding National Championship game for the NCCA Division 1 title. The final match this series will be held on Jan 7, 2014 between The Alabama Crimson Tide and Notre Dame Fighting Irish at Pasadena, Calif.
Delta Air Lines, Inc. (NYSE:DAL) wants to draw the travelling supporters and will launch different flights between Los Angeles, Tampa, Alabama, Atlanta, Detroit, New Orleans and Oklahoma to name a few. While fans across the major part of the nation will benefit from Delta’s expanded network, the carrier too will enjoy brisk business.
Delta Air Lines, Inc. (NYSE:DAL) expects a surge in its 2013 profits from these added flights. The company estimates pre-tax profits, excluding special items, to shore up 70% year over year to $2.6 billion this year. Further, it also foresees its debt position to decline to $9.6 billion in 2013 from $11.7 billion in 2012.
The airline carrier also expects revenues of $40 billion in 2014. Further, the rating firm, Moody’s Investors Service recently upgraded Delta Air Lines, Inc. (NYSE:DAL)’s outlook from stable to positive on margin growth and improvement of leverage position in 2013. These positives lead us to maintain a bullish stance on the company.
Delta Air Lines, Inc. (NYSE:DAL) Air Lines, which operates with other carriers like United Continental Holdings Inc (NYSE:UAL), JetBlue Airways Corporation (NASDAQ:JBLU) and Southwest Airlines Co. (NYSE:LUV), has a Zacks Rank #2 (Buy).
Disclaimer: This article is written by Zacks Equity Research and originally published at Zacks.com.