Delta orders additional Airbus A321 jets

Delta Air Lines has reached an agreement with Airbus to acquire 37 additional A321s as part of its efforts to renew its narrowbody fleet. The fuel-efficient A321s will replace older-generation jets, including the MD-88. The agreement follows an announcement Thursday that Delta would become the U.S. launch customer for Bombardier’s C-Series small narrowbody aircraft. The additional Airbus A321s, which are being acquired near the end of the model’s production cycle, increases Delta’s A321 fleet to 82 and is consistent with the company’s previously announced domestic fleet plan. Delta is focused on reshaping its narrowbody fleet with customer-focused aircraft that offer lower operating costs and better fuel efficiency. The 37 aircraft will be delivered concurrently with existing A321 orders through 2019. These transactions are part of Delta’s broader fleet strategy allowing the company to achieve its long-term financial targets, including 15 percent EPS growth and generation of US$4-5bn in free cash flow annually, while replacing 20% of its mainline narrowbody fleet over the next five years.