ATLANTA, April 29, 2016 /PRNewswire/ -- Delta Air Lines
(NYSE: DAL) 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 Airbus A320 family of aircraft continues to be a
cost-efficient, reliable and customer-pleasing mainstay of our
narrowbody fleet," said Ed Bastian,
Delta's incoming chief executive. "The order for the A321s is an
opportunistic fleet move that enables us to produce strong returns
and cost-effectively accelerate the retirement of Delta's 116
MD-88s in a capital efficient manner."
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 $4-5 billion in free cash flow annually, while
replacing 20 percent of its mainline narrowbody fleet over the next
five years.
Delta's A321s will feature an all-new interior with cabin
elements including high-capacity overhead bins, the latest in
in-flight entertainment, full spectrum LED ambient lighting,
standard 110v power available at every row, as well as in-flight
Wi-Fi and Delta Studio. The A321s will also feature wingtip
Sharklets, which will provide up to 4 percent improvement in fuel
efficiency.
The additional Airbus 321s will join 126 A320 Family
aircraft—featuring CFM56 engines—already flying in Delta's fleet.
The airline took delivery of its first A321 in March with the
inaugural flight scheduled to depart Monday,
May 2 between Atlanta and
Orlando, Fla.
"Delta is an industry leader in many ways, not the least of
which is contributing to the trend toward larger, more
fuel-efficient aircraft for their single-aisle fleet," said
John Leahy, Airbus Chief Operating
Officer – Customers. "The A320 Family continues to be the backbone
of every airline in the world that is paying attention to what
their passengers want and their investors need. In 2015, nearly 40 percent
of our A320 Family deliveries were A321s, up some 10 percent from
the previous year. Our customers, like Delta, know where to find
the best comfort, economy and reliability."
Forward Looking Statements
Statements in this press release that are not historical facts,
including statements regarding our estimates, expectations,
beliefs, intentions, projections or strategies for the future, may
be "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. All forward-looking
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from the estimates,
expectations, beliefs, intentions, projections and strategies
reflected in or suggested by the forward-looking statements.
These risks and uncertainties include, but are not limited
to, the cost of aircraft fuel; the impact of rebalancing our hedge
portfolio, recording mark-to-market adjustments or posting
collateral in connection with our fuel hedge contracts; the
availability of aircraft fuel; the effects of terrorist attacks or
geopolitical conflict; the possible effects of accidents involving
our aircraft; the restrictions that financial covenants in our
financing agreements will have on our financial and business
operations; labor issues; interruptions or disruptions in service
at one of our hub or gateway airports; disruptions or security
breaches of our information technology infrastructure; our
dependence on technology in our operations; the effects of weather,
natural disasters and seasonality on our business; the effects of
an extended disruption in services provided by third party regional
carriers; failure or inability of insurance to cover a significant
liability at Monroe's Trainer
refinery; the impact of environmental regulation on the Trainer
refinery, including costs related to renewable fuel standard
regulations; our ability to retain management and key employees;
competitive conditions in the airline industry; the effects of
extensive government regulation on our business; the sensitivity of
the airline industry to prolonged periods of stagnant or weak
economic conditions; and the effects of the rapid spread of
contagious illnesses.
Additional information concerning risks and uncertainties that
could cause differences between actual results and forward-looking
statements is contained in our Securities and Exchange Commission
filings, including our Annual Report on Form 10-K for the fiscal
year ended Dec. 31, 2015.
Caution should be taken not to place undue reliance on our
forward-looking statements, which represent our views only as of
April 29, 2016, and which we have no
current intention to update.
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SOURCE Delta Air Lines