Faced with overcapacity and plummeting airfares Delta is pacing its placing of orders for new aircraft as well as their deliveries so as to tune itself more closely with market requirements.
Delta Air Lines Inc. has disclosed that it will be cancelling its order of 18 787 Dreamliners aircrafts from Boeing. The cancellation is in agreement with Boeing.
The order, valued at more than $4 billion at current list prices, was assumed as part of its merger with Northwest Airlines.
However, Delta disclosed that it would continue to take delivery of Boeing’s 737-900ER aircrafts through 2019.
When asked to respond to requests for comments, Delta declined to comment beyond its statement.
The order cancellation come midst a slowdown in flight capacity and growth. In some instances, there has also been a shrinking of airline services as companies respond to falling prices of airfares.
Case in point: Norwegian Air Shuttle ASA is adding flights to the United States, while Delta is stuck with excess capacity, which is hurting its revenues.
Already Delta has 25 wide-bodied aircraft from Airbus and the A350, slated for delivery, will now augment its flight capacity even further by the end of this decade.
Earlier this year, Delta had stated it would defer the taking of delivery of four A350s by 1 or 2 from 2018 so as to make the taking of the delivery schedule “more consistent with (the) expected pace of international market improvement.”