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Delta Airlines To Become The First 5G-Equipped Global Airline

Delta Airlines (DAL) has taken the first step to becoming the first 5G-equipped global airline. The airline has teamed up with Apple (AAPL) and AT&T (T) to equip its flight attendants with best-in-class products aimed at enhancing service delivery.

As part of the strategic partnership, over 19,000 Delta Airlines flight attendants are to receive an iPhone 12 paired with AT&T’s 5G network to enhance customers’ travel experience. The airline is turning to technology and connectivity to bolster its prospects in an industry that is still reeling from the effects of COVID-19.

“Our flight attendants are the finest professionals taking to the skies day in and day out, so when we were looking for outstanding products that meet the Delta standard, Apple and AT&T were top of mind,” said Senior Vice President of In-Flight Services, Allison Ausband.

Bringing together iPhone 12 performance and high-speed, low latency AT&T 5G connectivity should open up new possibilities for Delta. The Apple devices and super-fast internet service from AT&T should allow flight attendants to adapt to the future of the travel industry.

Flight attendants will be able to access in-cabin inventory quickly using augmented reality and iPhone 12 cameras. Immersive training using AR will also become a reality, allowing flight attendants to perform critical tasks from anywhere and with ease. Flight attendants will also gain access to training videos, photos, and AR while on the go. (See Delta stock analysis on TipRanks).

Two weeks ago, Stifel Nicolaus analyst Joseph DeNardi reiterated a Buy rating on Delta Airline. However, the analyst cut his price target to $57 from $58, implying 22.74% upside potential to current levels. The cut came on the back of  company delivering Q2 guidance that was below expectations.

DeNardi stated, “2Q revenue guidance was lower than projected with -50-55% y/2y indicating only a modest sequential improvement over March. Part of the drag is coming from continued middle-seat blocking (through April) and the remainder seems to be a mixture of business and long-haul international demand weakness.”

Consensus among analysts is that Delta Airlines is a Moderate Buy based on 7 Buy and 7 Hold ratings. The average analyst price target of $57.08 implies 22.9% upside potential to current levels.

DAL scores 2 out of 10 on TipRanks’ Smart Score rating system, implying that it is likely to underperform market averages.

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