Airbus nearing significant widebody order from Delta -sources

Reuters

Published Jan 09, 2024 01:14

By Tim Hepher, Rajesh Kumar Singh and Valerie Insinna

PARIS/CHICAGO/WASHINGTON (Reuters) - Airbus is nearing an order from Delta Air Lines (NYSE:DAL) for dozens of wide-body jets including extra A350-1000 aircraft, industry sources told Reuters.

Depending on last-minute negotiations, a deal could be made public as early as Friday when the U.S. carrier reports its fourth-quarter earnings, they said.

Airbus declined to comment. Delta said it does not comment on industry speculation.

While the Atlanta-based carrier placed an order for 100 Boeing (NYSE:BA) 737 MAX 10 jets in 2022, it has primarily been an Airbus customer.

At the end of September the company had 65 Airbus A330 and 28 A350-900 wide-bodies, with commitments to purchase another 16 each.

The twin-aisle jets are expected to help the company to grow its network in Asia-Pacific, which has lagged behind the U.S. and Europe in global travel demand recovery after the pandemic.

However, U.S. airlines are betting on the region as the next source of high-margin revenue at a time of soaring costs. In the current quarter, Delta, United Airlines and American Airlines (NASDAQ:AAL) are estimated to increase seats on their flights to the region by more than 70% from a year ago.