Airbus nearing significant widebody order from Delta -sources
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.
Airlines are also scrambling to order new planes to renew existing fleets amid fears of a shortage in coming years.
Airbus last year set an industry record for gross and net orders.
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