Delta Locks In A330neo and A350 Slots

Delta added to its Airbus orderbook today: 16 more each of the A330-900 and A350-900. Neither choice is a surprise. Coming on the heels of its recent 787-10 order, Delta is clearly betting on continued international growth. More importantly, it means getting into OEM delivery skylines as soon as possible. Why these aircraft? Older 767s are increasingly a problem. Social media regularly has posts about broken Delta 767s disrupting travel. Annoying as that is to the brand, it's small beer compared to the real costs to the network. Airlines must have network reliability, especially when you are a network carrier. A 767 going AOG in Amsterdam, or even taking an hour delay for a mechanical, is a small item when you operate over 800 aircraft. But that small ripple runs through potentially dozens of the rest of the fleet. Next, these two models have proven themselves to be excellent choices. The A350 enables Delta to stretch its brand far across the globe. For example, there's an A350 that starts its workday in Seoul and heads to Atlanta. From Atlanta, that same aircraft then goes on to Cape Town. Think about that as a line over a globe - it's quite a stretch. Then there's the A330-900, which has proven itself to be more than the "natural" A330-300 replacement. It is a more capable aircraft. It is an excellent choice to replace 767s, too. This chart lays out Delta's twin-aisle range and fuel burn. [caption id="attachment_186838" align="aligncenter" width="580"] DOT T2; AirInsight[/caption] Note the A350's range - it can reach anywhere Delta needs to go and has state-of-the-art fuel efficiency. Note the fuel efficiency of the A330-900 - it's the right size to replace both A330ceo and 767 with better economics plus more range. The model choice is clear from the chart. The Airbus Backlog As we explained in this note yesterday, Airbus has a backlog that spans over a decade. If your airline has growth plans, you want new aircraft because they are cheaper to maintain and use less fuel. But there's another issue - capacity availability. This chart lays out this growing issue. The chart lists data for Airbus twin-aisle aircraft. [caption id="attachment_186839" align="aligncenter" width="580"] OEMs; AirInsight[/caption] If you need to add to your Airbus twin-aisle fleet, you must get into that skyline sooner rather than later. Here's an insight from the supply chain: "We have over 85% of our customer purchase orders placed for 2026 and a good amount for 2027. Material and specialized hardware, such as bearings, have driven long lead times, requiring our customers to confirm build plans early. While most parts have a 2- to 3-month manufacturing timeline, titanium and bearing lead times are in the 52-week range. Our major customers also provide an 18-month part-level forecast as part of their contractual obligation." Waiting makes no sense. Industry shocks from everywhere are old news. Plan for growth because that's what markets do, every time. Traffic always comes back. Capacity is a key asset. Summary The selection question for us is why the A350-900 rather than more than -1000s? Delta's first A350-1000 is scheduled to take its first flight this year. For several markets, this aircraft offers Delta even more capacity. So we expect to hear more about this model, too. In summary, Delta is making early moves on proven platforms. Smart choice.

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