According to industry sources, Delta Air Lines is on the verge of making a deal with Airbus to purchase a substantial number of wide-body jets, which includes extra A350-1000 aircraft. The agreement could be made public as early as Friday, coinciding with the release of Delta's fourth-quarter earnings, provided that the final negotiations are successful. The European aircraft manufacturer has refrained from commenting on the matter, while Delta has stated that it does not comment on industry speculation.
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Delta has primarily been an Airbus customer, despite placing an order for more than 100 Boeing 737 MAX 10 jets in 2022. The airline had 65 Airbus A330 and 28 A350-900 wide-body aircraft as of September, with commitments to purchase an additional 16 each. This move is expected to help the company expand its network in the Asia-Pacific region, which has not rebounded as quickly as other regions in terms of global travel demand following the pandemic.
However, U.S. airlines are optimistic about the region's potential as the next source of high-margin revenue, even as costs continue to escalate. Delta, United Airlines, and American Airlines are estimated to increase seats on their flights to the area by more than 70% from the previous year in the current quarter. This is a reflection of the airlines' belief that the Asia-Pacific region will be a crucial market for them in the post-pandemic era.
In addition to this, airlines are scrambling to order new planes to renew existing fleets, given the possibility of a shortage in the coming years. Airbus set an industry record for gross and net orders in 2021, highlighting the demand for new planes. In summary, the potential deal between Delta and Airbus is a significant development for both companies, as it could aid Delta's growth in the Asia-Pacific region and bolster Airbus' orders.