a Delta Air Lines Boeing 737 MAX aircraft
credit: Delta Air Lines
There are options for 30 more planes in the deal. Delivery is expected to begin in 2025.
The new order is good news for Boeing as Airbus has recently achieved high-profile sales, including those of several state-run airlines in China. Boeing lamented trade tensions when that order was announced.
Orders are valued at $13.5 billion at list prices, but discounts are common, especially for large sales. Delta did not disclose how much it paid but said the sale would not change its latest capital expenditure forecast.
Delta said Monday that the order will modernize its narrow-body fleet as the carrier tries to capitalize on a rebound in travel caused by a record slowdown covid pandemic, It said MAX aircraft would be 20%-30% more fuel-efficient than the jetliners to be replaced by them.
Atlanta-based Delta is the only one of the top four US carriers that hasn’t ordered new Boeing jets in recent years, favoring Airbus as it grew both its narrow-body and long-range wide-body fleets. Delta retired the older Boeing 777 during the pandemic and is taking more deliveries of Airbus A350 twin-aisle planes.
The 737 Max was grounded for at least 18 months after the second of two fatal crashes in 2018 and 2019 together killed 346 people. The US lifted the grounding in November 2020. Delta’s competitors faced capacity constraints during that period as deliveries of the new Max were halted.
The Max 10 model is the largest in the narrow-body Max family and is yet to get government approval. Boeing hopes to receive approval for the planes before the end of the year, ahead of regulation passed in the wake of two accidents that would have required new planes to be equipped with cockpit alert systems, though lawmaker Boeing has been asked to come up with one. Can be given. Discount.
“We have to make our case and it has to be persuasive, and we believe it is,” Boeing CEO Dave Calhoun told CNBC.squawk box” on Monday.
Delta said it expects the FAA to sign the planes next year.
Delta CEO Ed Bastian had previously hinted at an order for Max planes. Asked at a recent investor conference about a possible order for the narrow-bodied planes, Bastian said, “We’re trying to work out a deal with Boeing on that … hopefully we find out.” will be able to put it.”
Delta will configure the aircraft with 182 seats: 129 in Standard Economy, 33 in Comfort+ with extra legroom, and 20 in First Class.
Most of Delta’s new orders in recent years have come from Airbus in Europe.
In 2017, Delta was in the middle of a trade dispute between Boeing and Canada’s Bombardier, the then-maker of the C-series narrow-body aircraft that Delta had ordered. Boeing alleged Bombardier was selling the planes for less than cost, a case it eventually lost. Airbus later changed the name of the aircraft to A220.
Boeing shares gave up earlier gains as the broader market fell, turning little on Monday, while Delta shares rose 3.5%.