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ATLANTA (Reuters): Delta Air Lines Inc said it has ordered 37 current-generation A321 aircraft from Airbus Group SE worth $ 4.25 billion at list prices, a move that will help it replace aging aircraft.
The new jets, set to be delivered through 2019, will augment A321s that Delta already has on order and boost the carrier’s fleet of these planes to 82, the airline said in a news release.
The move will help Atlanta-based Delta, the second-largest US airline by traffic, maintain its growth plans while retiring 116 old MD-88 aircraft, which seat 149 people. The new planes can seat 185 people.
Airlines typically enjoy discounts of 40% or more on aircraft off list prices.
“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,” Delta’s incoming Chief Executive Ed Bastian in the release.
Reuters reported earlier this month that Airbus was nearing a deal to sell Delta the 37 jets.
The announcement comes a day after Delta ordered 75 CS100 aircraft from Bombardier Inc, boosting the Canadian planemaker’s stature in the airline industry even as it faces a long road back to profitability.