Delta CEO Plans to Maintain Fleet Balance between Boeing and Airbus

Delta Air Lines’ CEO, Ed Bastian, recently confirmed that the airline does not have any immediate intentions to make substantial changes in its fleet mix between Boeing and Airbus aircraft.

Bastian stated, “We are constantly working with Airbus and Boeing, and currently, we are primarily adding Airbus planes. However, we are eagerly anticipating the arrival of the Boeing MAX in a couple of years. Maintaining a balance between Boeing and Airbus products is of utmost importance to us.”

Delta Air Lines has the largest airline fleet in the world, with 943 aircraft as of April 2023. It currently operates a fleet of 445 Boeing and 411 Airbus aircraft, and is the largest operator of some models such as the Boeing 717, Boeing 757, Boeing 767, Airbus A220, Airbus A330 and Airbus A350.

It has 749 narrow-body aircraft and 173 wide-body aircraft, and uses them for different routes depending on the demand and distance. Delta has been renewing its fleet by acquiring new or newer model aircraft since 2013, reducing its average fleet age to 14.8 years.

The airline has placed orders for 216 Airbus planes and 100 Boeing aircraft, including models such as the A321, A330, A350, A220, and 737-10.

Bastian emphasized Delta’s long-term approach to fleet decisions and financial planning, stating that the airline evaluates aircraft choices and spending patterns over extended cycles. Delta is investing in its fleet with cash payments and expects to generate a minimum of $2 billion in free cash in 2023. The company aims to double this figure in 2024.

Cash flow management has been a crucial aspect of Delta’s strategy. In 2023, the airline has already achieved the 20 highest cash sale days in its history, with approximately 60% of its revenue coming from sources other than ticket sales. While business travel has recovered to about 80% of 2019 levels, Bastian noted that there is still room for growth, considering the larger size of the economy.

Bastian highlighted the current summer season as a period of robust domestic travel, while expressing great enthusiasm for the demand-driven international travel during this time. He believes that the aviation industry has an opportunity to rebound from the challenges faced last summer and emphasizes the importance of maintaining discipline in operations.

With a positive outlook extending beyond the summer season, Bastian expects Delta’s performance in the second quarter of 2023 to come close to matching the levels achieved in the same period of 2019, a pre-pandemic year.

Furthermore, Delta Air Lines is part of the Capital Access Alliance, a coalition supporting proposed legislation that aims to remove federal restrictions at Washington Reagan National Airport, enabling more and longer flights. While supporting the initiative, Delta has not yet disclosed specific longer routes it would like to see added, pending the bill’s approval.

Bastian affirmed, “We are focused on achieving greater access at Washington Reagan National Airport. Identifying longer routes is something we will consider once we progress further with this effort.”