Zacks Industry Outlook Highlights: Boeing, Embraer, Delta Air Lines, JetBlue Airways and United Continental

 Zacks Industry Outlook Highlights: Boeing, Embraer, Delta Air Lines, JetBlue
                        Airways and United Continental

PR Newswire

CHICAGO, Dec. 11, 2013

CHICAGO, Dec. 11, 2013 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Airlines, including Boeing (NYSE:BA-Free Report), Embraer SA
(NYSE:ERJ-Free Report), Delta Air Lines Inc. (NYSE:DAL-Free Report), JetBlue
Airways Corporation (Nasdaq:JBLU-Free Report) and United Continental
(NYSE:UAL-Free Report).


Industry: Airlines


Service and Fleet Restructuring: Air carriers at large are scrapping flights
in many small and unprofitable airports in order to reduce their cost burden
that has increased 55% over the period 2006–2013. The companies continue to
replace old and depleted airplanes with new and upgraded ones. Though
initially expensive, new and improved aircraft are more fuel efficient than
the existing ones and will help in lowering operating and maintenance costs.

Over the next 20 years, global airlines are expected to invest in excess of $4
to $5 trillion in fleet development. Apart from the high demand from the oil
rich Gulf nations, a major part of the fleet demand will also be driven by
China and the continuous expansion of low-budget carriers around the world.
For this, the airlines are banking on top aircraft manufacturers such as
Boeing (NYSE:BA-Free Report), Embraer SA (NYSE:ERJ-Free Report) and Airbus.

Over the long run, the carriers aim to replace their old narrow-body jets –
A320's/B757-200/300 – with advanced narrow-body airplanes such as A-321, A320
Neo and the B737 Max, for better service and demand-supply equilibrium.

In October,Delta Air Lines Inc. (NYSE:DAL-Free Report) has announced its plan
to purchase 40 new jets from European aircraft manufacturer Airbus in a deal
worth $5.6 billion. Delta has ordered 10 A330-300 wide body jets and 30 narrow
body A321 aircraft to be delivered between 2015 and 2017. Four A330 will be
delivered in 2015, with four more scheduled for the coming years and the
remaining two for 2017.

In October, JetBlue Airways Corporation (Nasdaq:JBLU-Free Report) entered into
an agreement with Airbus to purchase 15 new A321 ceo and 20 new A321 neo
aircraft. The carrier has also opted to upgrade the existing order of 8 new
A320 ceo and 10 new A320 neo with 8 new A320 ceo and 10 new A321 neo.

Jet Renovation: With passengers demanding comfort and quality service along
with proper security, airlines are focusing on aircraft redesigning with new
and attractive products and services within the travel plan.

United Continental (NYSE:UAL-Free Report) is offering premium flat-bed cabin
seats on every transcontinental flight between New York's John F. Kennedy
International Airport and San Francisco/Los Angeles. Further, the aircraft
will have 42 Economy Plus seats with additional legroom. This is in addition
to flat-bed seats and personal on-demand entertainment system for its premium
cabin passengers of long-route international flights. This will also provide
flyers an added level of privacy and comfort along with multi-course meals and
complementary wine plus personal staff attention.

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