Delta Air Lines recently placed an order for up to 60 Boeing 787-10s, which will be delivered as of 2031. This is a major development for the airline, given the carrier’s wide body fleet renewal has otherwise been centered around Airbus jets, making this a big win for Boeing.
However, since that order, JonNYC has been hinting that there could be another wide body aircraft order, specifically for Airbus aircraft. Well, as usual, he nailed it, and the order came even faster than most of us were expecting. Delta has just announced an order for over 30 Airbus jets, which I’d consider to be pretty significant.
In this post:
Delta adds 31 Airbus wide body jets, deliveries start 2029
Delta has just placed a firm order for 31 Airbus wide body jets, including 16 A330-900neos and 15 A350-900s, which will be delivered as of 2029. With this, Delta’s A330-900neo fleet will increase to 55 aircraft, while the A350 fleet will increase to 79 aircraft, including 20 A350-1000s, which will be delivered as of 2027.
This order combines a new, incremental order, with the exercising of 10 existing options. As the airline describes it, Delta’s fleet is undergoing a significant renewal and expansion, to match its international and premium growth strategy in the next decade and beyond. With this latest announcement, Delta now has 85 wide body aircraft on order.
The new wide body aircraft will add more capacity to medium and long haul international markets, while improving fuel efficiency and margins. Here’s how Delta CEO Ed Bastian describes this:
“As we grow our international footprint and prepare our fleet to serve expanded long-haul markets, these aircraft will enhance our capabilities and elevate our premium offerings. We value our long-standing partnership with Airbus, and with these widebody aircraft we will see long-term growth and cost benefits for years to come.”
The timeline of deliveries with these planes starting in 2029 makes perfect sense. That’s because Delta plans to take delivery of all of its A350-1000s in 2027 and 2028 (at this point deliveries may realistically stretch into 2029, given delays), while the Boeing 787-10s will only be delivered as of 2031. So the airline obviously had a gap to plug there, and these planes will help with that.
How these Airbus jets fit into Delta’s fleet renewal
With this latest aircraft order, here’s the current state of Delta’s “next generation” wide body fleet renewal:
- Delta has 39 Airbus A330-900neos, with 16 more on order (thanks to what was just announced), to be delivered as of 2029
- Delta has 40 Airbus A350-900s, with 19 more on order (four were previously on order, and 15 were just announced), and deliveries of those are ongoing
- Delta has 20 Airbus A350-1000s on order, to be delivered in 2027 and 2028, plus options for 20 more
- Delta has 30 Boeing 787-10s on order, to be delivered as of 2031, plus options for 30 more
Then in terms of Delta’s previous generation wide body aircraft:
- Delta has 11 Airbus A330-200s, which are an average of 21 years old
- Delta has 31 Airbus A330-300s, which are an average of 17 years old
- Delta has 38 Boeing 767-300ERs, which are an average of 29 years old
- Delta has 21 Boeing 767-400ERs, which are an average of 25 years old
I think Delta’s order for a mix of A330-900neos and A350-900s is logical. When you look at the current state of things, Delta needs some more “workhorse” wide body jets in the long run. Keep in mind the A350-1000s are largely supposed to be used for ultra long haul expansion, including to destinations in Asia, the Middle East, and India, which aren’t currently served. So if you view those planes as being for growth rather than fleet renewal, then you realize why Delta needed to order more planes.
The airline has 91 older generation aircraft that eventually need to be retired, while the airline now has a total of 85 wide body aircraft on order (that number includes the 31 that were just announced). Now, admittedly the A330-300s in particular could easily fly for another decade (or even longer… we’re talking about Delta here), so clearly the goal here is to grow the fleet, rather than just refresh it.
The A330-900neos can basically serve any Delta destination in Europe or South America, and in some cases, even destinations in North Asia (though at this point Delta has an all-A350 strategy across the Pacific). Meanwhile the A350s can be used for virtually any route, so provide lots of flexibility.
I think what’s so interesting is the number of wide body planes that each of the “big three” carriers now has on order:
- United has 141 wide body aircraft on order
- Delta has 85 wide body aircraft on order
- American has 19 wide body aircraft on order
Talk about three very different visions, so it’s going to be interesting to see how this all plays out.
Bottom line
Delta recently placed a firm order for 30 Boeing 787-10s, with 30 options. Now the airline has placed an additional order with Airbus, for 31 more wide body planes. This includes 16 A330-900neos and 15 A350-900s.
This order makes perfect sense — at least in the long run, Delta needs more next generation wide body aircraft. A330-900neos are great for any missions to Europe and South America, while A350-900s are great for expansion to Asia, the South Pacific, etc.
Perhaps the most interesting thing is just how far apart the “big three” US carriers are with their wide body aircraft orders. United is being most aggressive, American is being least aggressive, and Delta is somewhere in the middle.
What do you make of Delta’s Airbus aircraft order?
Actual question here: How is the”life” of an older aircraft determined with regards to commercial service? Is there an age cut-off? Are they eventually just replaced by more efficient air craft once maintenance costs are too high?
@ Francisco C -- It's a great question, and it depends entirely on the airline, whether the aircraft is owned and paid off or leased, etc. Airlines take wildly different approaches with this, since old planes can keep flying for a very long time. Obviously fuel efficiency isn't as good and maintenance costs are higher, but if you have a plane paid off, there's a huge advantage to that.
For example, Singapore Airlines often leases...
@ Francisco C -- It's a great question, and it depends entirely on the airline, whether the aircraft is owned and paid off or leased, etc. Airlines take wildly different approaches with this, since old planes can keep flying for a very long time. Obviously fuel efficiency isn't as good and maintenance costs are higher, but if you have a plane paid off, there's a huge advantage to that.
For example, Singapore Airlines often leases planes, and then returns them after 10 years, since the airline wants a modern fleet. Then you have airlines like Delta and United, which don't mind flying 30+ year old wide body planes, given that they're largely paid off, and help keep debt down.
the real cost comes down to maintenance and fuel vs. newer aircraft.
US airlines used to write down airplanes over 20 years but have extended it beyond that and are flying aircraft that are not only paid for but written down from an accounting standpoint
Fuel prices are low so there is much less benefit from newer aircraft in fuel savings but maintenance costs on older aircraft is even higher due to labor costs.
...
the real cost comes down to maintenance and fuel vs. newer aircraft.
US airlines used to write down airplanes over 20 years but have extended it beyond that and are flying aircraft that are not only paid for but written down from an accounting standpoint
Fuel prices are low so there is much less benefit from newer aircraft in fuel savings but maintenance costs on older aircraft is even higher due to labor costs.
There are also maximum hours for each airframe for each phase of overhaul which means that holding onto an airplane for a longer period of time adds even more cost.
The real message with DL's widebody orders is that it does not intend to go with narrowbodies over the Atlantic - which are less capable and less efficient on a cost per seat mile basis - while AA and UA are chasing that model.
DL is also upgauging to even larger aircraft which UA will also do since all 767 widebody replacements will be larger. UA will simply offset some of that size increase by adding smaller 321XLRs while DL will be adding larger and more capable aircraft across the board compared to what it is flying.
No age cut-off, but pressurization cycles and flying hours and economic numbers e.g. maintenance costs, fuel prices, downtime due to maintenance. A plane makes money when in service. It doesn't make money when it's undergoing maintenance.
Right now, the economy is not doing too badly so they still fly older aircraft. But if and when there's a downturn, you'll start to see retirements sooner. A good example would be the 777s during COVID.
Mike,
DL only flew 18 777s split between the -200ER and 200LR models. DL bought the A350 as a replacement for the 777-200ERs (which is what Airbus designed the A350-900 to be) but Airbus was already enhancing the A350 to have as much or more range as the LR.
yes, DL has always had "flex fleets" and the 767s are that fleet now but the baton will be passed to the A330CEOs. TATL demand...
Mike,
DL only flew 18 777s split between the -200ER and 200LR models. DL bought the A350 as a replacement for the 777-200ERs (which is what Airbus designed the A350-900 to be) but Airbus was already enhancing the A350 to have as much or more range as the LR.
yes, DL has always had "flex fleets" and the 767s are that fleet now but the baton will be passed to the A330CEOs. TATL demand is stronger in the summer when you need more widebodies but DL has done a good job of adding new routes and increasing capacity in the S. Pacific and Africa and the Middle East during the winter just as demand to Europe trails off.
and DL is retiring widebodies now, something UA has not committed to doing based on their latest published fleet plan. UA is simply facing a larger replacement cycle than either AA or DL; all airplanes have life limits and UA's costs will just keep increasing until it gets rid of older aircraft. and, more significantly, UA isn't gaining an edge by holding onto older aircraft. DL is growing as fast in international markets as UA is and doing it with far better financial results.
As I have noted multiple times, DL has had Airbus widebody options on its books and this order involved the conversion of 10 of those 20 options and the addition of more Airbus widebodies while also gaining 20 more options.
DL is owed customer compensation from Airbus for the roughly one year delay on the A350-1000s and this order involved DL "cashing in" on some of that compensation. DL also has not been happy...
As I have noted multiple times, DL has had Airbus widebody options on its books and this order involved the conversion of 10 of those 20 options and the addition of more Airbus widebodies while also gaining 20 more options.
DL is owed customer compensation from Airbus for the roughly one year delay on the A350-1000s and this order involved DL "cashing in" on some of that compensation. DL also has not been happy with the Trent 7000s on the 330-900s and Rolls Royce not only provided discounts but expanded DL's overhaul rights on the Rolls Royce Trent family of new generation engines.
As I have also noted, DL doesn't have to replace all of its 767-300ERs because the majority of the fleet does not fly international routes and a number of 763s will be replaced with DL's premium configured A321NEOs on transcon routes which in combination with larger widebodies will provide as much or more capacity with fewer widebodies. The engines on the new A350-900s come with a performance improvement package that reduce fuel burn by another 1% and increase longevity.
10 of the A330-300s are 10 years old so they could fly to 2040 and still be younger than many other widebodies in the US carrier fleet.
These newest orders come right after the bulk of the A350-1000 orders will be delivered and before the 787-10 orders. DL still has 10 options from its previous order book that will be exercised for more A350-1000s, likely by next year.
The first DL A350-1000 has been assigned an Airbus production number and will begin being built later this year with delivery in early 2027.
The 339 remains a very capable TATL airplane while the two A350 models give DL the most capable and efficient widebody fleet in the US industry which will allow DL to expand its ultra longhaul flying.
All of these aircraft are larger than DL's current widebody fleet average which means DL has substantial growth capacity not just from adding more widebodies but also from using larger and longer range aircraft
DL has 60 widebody options from Airbus and Boeing which means that DL will have a larger widebody fleet in 10 years if all of those options are exercised than UA. and DL has no domestic configured widebodies. DL has more than enough widebody orders for substantial growth.
DL pilots love this new order because it adds far more large widebodies which, like UA, pay more than 767-300ERs pay
As for comparisons between the big 3 on widebody orders, AA made it clear it is going to refurbish its 777-200ER fleet which is much younger and more capable than UA's 777 fleet while also doubling down on use of the A321XLR to build its international network.
UA has cashed it its customer compensation from Boeing to add substantially to its 787 order book but DL and UA have about the same amount of growth widebody capacity until 2035 with DL having substantially less stress on its balance sheet due to massive order commitments.
UA also has a 767 fleet that is just as old as DL's and also has almost five dozen Pratt powered 777s that UA can't get the parts to fix and are one more major engine failure from grounding the entire fleet (there have already been 3 major in-flight failures of Pratt 4000s)
and the A350 is simply a larger and far more efficient aircraft than anything UA has on order.
DL and UA will be the two largest US international airlines with DL adding far more to its global network over the next five years than UA
Is there a clear reason why the A35Ks are delayed?
What are you all going to complain about when the 763s, 764s, and 332/3s are gone?
Guess we will find out in 2045 when that happens!
@Harold
Maybe Tim Dunn can tell us.
Pleased to see the Airbus orders; I prefer 339 because in-back it’s usually 2-4-2, which is better for couples. Most 359, 787, 777, etc. are 3-3-3 or worse.
US demand for international travel seems largely now based on leisure travel. I think this will fall off on the next few years as the US dollar continues its downward spiral and stock markets cool. Business travel is unlikely to increase to fill the gap. Demand for these new routes and the associated new aircraft will fall. I suspect many orders will not be delivered.
Not entirely true. Business travel has climbed back, though I'd agree a lot of the leisure routes to Europe being launched by DL and UA are froth at this point and not sustainable. The reality at Delta is that it has to replace the B767-300ERs and B767-400ERs. They have lousy products, are old planes, and don't give it the cabin layout and real estate that allows them to increase premium seating, to generate higher sales...
Not entirely true. Business travel has climbed back, though I'd agree a lot of the leisure routes to Europe being launched by DL and UA are froth at this point and not sustainable. The reality at Delta is that it has to replace the B767-300ERs and B767-400ERs. They have lousy products, are old planes, and don't give it the cabin layout and real estate that allows them to increase premium seating, to generate higher sales and revenue. The 787-10 is the replacement jet for the 767. As to the A339 and A359 order, I'd question whether DL really needs more A359s. It doesn't have an intercontinental route network that needs that much range. It has A35Xs coming, which will only work for a handful of its routes. The A339 top up will go toward an eventual replacement of the oldest of the A333s and A332s, which are all ex-NW machines (does not include the A333 top up order DL made post-merger). All this said, Delta's bet on ever increasing premium (leisure) demand assumes the US economy will continue to grow, indefinitely, and it won't. The USD is weak. The US economy is very vulnerable to shocks and a significant downturn, given the country's global posture, its out of control debt, which will eventually trigger a default, and its rampant inflation. A deep recession is coming and unlike in the past, the US will find it very difficult to climb out of it. Good luck!
Air Europa is getting rid of their 787s to be replaced with A350s apparently.
Those 787s are still young though.
Most of them are around the 10 year mark so I imagine leases are up?