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Wednesday, November 27, 2024

Reports Suggest Delta Could Place Airbus A220 & Boeing 737 MAX Orders At The Farnborough Airshow

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Delta Air Lines released its 2022 second-quarter results yesterday, reporting operating revenue of $12.3 billion (€12.25 billion), within 1% of the $12.4 billion it earned in 2019. However, its operating income of $1.44 billion was down 32% from the 2019 return of $2.14 billion.

Reuters reported today, citing “people familiar with the matter,” that Delta Air Lines (Delta) is in talks with Airbus to expand the airline’s existing order for Airbus A220 aircraft. The report said Delta is looking to add around twelve extra A220s and could sign a deal at next week’s Farnborough Airshow in the UK. It adds that Delta “is also widely expected to finalize an order for at least 100 Boeing 737 MAX airliners.” The Airbus June 30 orders and deliveries report lists unfilled orders from Delta for 222 aircraft, comprising 39 A220-300s, 152 A321neos, 23 A330-900s and eight A350-900s. The same Boeing report for June 30 lists no orders from Delta, although 759 B737 MAX orders are recorded for Unidentified Customers.

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Delta CEO staying tight-lipped on A220s

Delta has a fleet of 56 Airbus A220s with 39 of the larger A220-300s on order. Photo: Vincenzo Pace I Simple Flying

During yesterday’s earnings call, CEO Ed Bastian was asked if an order for extra A220s would be signed next week. He replied: “We don’t comment on upcoming decisions that have yet to be taken, so I’ll leave that at that.”

However, a different, more general question on Delta’s aircraft orders drew a much more expansive answer from Bastian. He replied: “We have the opportunity in the next three to five years of delivery of some additional narrowbody, large narrowbody acquisitions, and that’s something we’re always talking to Airbus and Boeing about.”

“We have focused a lot of our energy in the last few years on the widebody and specifically the 350 and the 330, and we’re pleased with the used 350s that we’ve acquired. We’ve got a healthy stream of widebodies coming so I’d say the focus in the back end of the five-year period is on the large narrowbodies.”

Delta is the only major US carrier without a B737 MAX on order. In June, Bastian said there was a place in Delta’s fleet for the MAX, and the airline “was trying to get a deal done with Boeing. We’re keeping our eye on that, and, hopefully, we’ll be able to figure that out.” According to ch-aviation.com, Delta has 159 Boeing B737-900ERs, 77 B737-800s and one B737-700 in its fleet of 903 aircraft.


Is it time for some new B737s at Delta?

Delta has 77 Boeing B737-800s with an average age of 21 years that are ready for replacement with B737 MAX or A321neo aircraft. Photo: Vincenzo Pace I Simple Flying

The average age of the B737-800s is 20.9 years, and for the B737-900s, it’s six and a half years, so there is a need to replace some of the older, less fuel-efficient aircraft. Delta also has more than 100 A320 family aircraft between 20 to 27 years old, so the existing order for 152 Airbus A321neos may not impede a new order for B737 MAX aircraft.

It’s also notable that Delta has 88 Boeing B717s, with an average age of 20 years, in its fleet. Currently, 24 are inactive, which may be a reason for Delta to increase its A220 order with Airbus. Another twist in the tale is that Delta has been linked to the MAX 10, an aircraft Boeing CEO Dave Calhoun said could be canceled if certification tissues were not resolved.

If Delta places an order next week for 100 B737 MAX 10s, it will be fascinating to see how the FAA and US lawmakers respond to the certification timeline issue, with such a large order hinging on their decision.

Will they be pragmatic with jobs on the line and extend the MAX 10 certification deadline beyond 2022?



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