According to the report, Zacks believes industry consolidation and ancillary revenues will boost indsutry profitability for most air carriers going this year and beyond. Revenue gains for air carriers being further focused on passenger satisfaction and experience driving growth, JetBlue Airways Corp., for instance, augmented its TrueBlue loyalty program by allowing individual customers earn and use points as a group.
Delta, accordingly, has upgraded its Economy Comfort seating in all transcontinental flights operating from New York’s JF Kennedy Airport to Los Angeles, San Francisco and Seattle. And other airlines have followed suit across a range of customer incentives and experience elevating programs.
To Mergers & Acquisitions, the Zacks news spotlights Airline companies restoring lost profits and reach by joining forces. Northwest Airlines and Delta Air Lines in 2008, United Airlines and Continental Airlines in 2010 and AirTran Holdings and Southwest Airlines Co. (NYSE: LUV–Free Report) in 2011, were highlighted instances.
North American carriers, in particular, are shown in almost continual expansion of both range of domestic and international flights. United Airlines is used as a case study here, having expanded their international service between Los Angeles and Melbourne from Oct 2014.
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