Delta Air Lines Inc. is in talks with Airbus SE for a significant wide-body aircraft order, according to people familiar with the matter, as rising demand for long-haul flying prompts airlines to restore post-Covid networks and replace older planes.
(Bloomberg) — Delta Air Lines Inc. is in talks with Airbus SE for a significant wide-body aircraft order, according to people familiar with the matter, as rising demand for long-haul flying prompts airlines to restore post-Covid networks and replace older planes.
The talks cover both A350 and A330neo twin-aisle jets, said the people, who asked not to be identified discussing confidential negotiations. An agreement isn’t assured, they cautioned. A potential order could total dozens of planes, as Delta works to replace a combined fleet of more than 100 older A330 and Boeing Co. 767 models, one of the people said.
An Airbus spokesperson declined to comment, as did an official at Delta.
Long-distance flying is catching up with an earlier rebound in shorter journeys following the deep travel slump caused by the pandemic. Airlines are locking in delivery slots now in a bet on a sustained recovery, and to ensure access to new jets as manufacturing issues, including shortages of parts and labor, drag on.
Transatlantic Turnaround
Delta is increasing seats on aircraft flying international routes by more than 20% this quarter versus a year ago, and about 75% of global seats had already been booked, President Glen Hauenstein said on an April 13 conference all. It’s operating its largest transatlantic schedule ever.
“We are excited with the momentum we’re seeing and expect record revenues and profitability for the summer travel season,” he said at the time.
The talks for A330neo and A350 jets aren’t yet at an advanced stage, the people said. But Airbus and Boeing’s marquee wide-body jets are in high demand, giving both sides an incentive to reach an agreement ahead of next month’s Paris Air Show, the aviation industry’s largest trade expo.
Atlanta-based Delta already operates both Airbus models and has hinted at buying more A330s. It’s the biggest operator of that Airbus type, with 63 planes as of March, including 21 of the re-engined A330neo, which has improved fuel economy. Delta’s older A330-200s average 18 years, and its A330-300s 14 years.
The airline has also said it could replace Boeing 767s — some of the oldest aircraft in its fleet — with A330neos, noting the improved unit costs.
Delta had 66 767s in its fleet at the end of March, with 767-300ERs averaging 27 years and 767-400ERs at just over 22 years.
Delta also had 28 Airbus A350s — a newer, more advanced aircraft. It had a total of 33 A330s and A350s on order as of March 31.
(Updates with potential order volume in second paragraph)
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