Delta Air Lines Aims at Fleet Growth: More Upside Ahead?

In a bid to cater to the improving air-travel demand scenario, Delta Air Lines DAL is continuously looking to expand its widebody fleet. To this end, the Atlanta-based heavyweight airline announced earlier this year that it will add 31 (16 A330-900s and 15 A350-900s) additional next-generation Airbus widebody aircraft to the fleet. Delivery of the new jets is expected to begin in 2029.

The latest fleet expansion move is aimed at strengthening Delta’s long-term global network while modernizing older planes. The agreement includes a fresh aircraft order, the activation of 10 previously secured options and the addition of 20 more options for future widebody purchases. Expressing delight at the new development, Delta’s chief executive officer, Ed Bastian, indicated that, as the carrier broadens presence in overseas markets and positions itself for expanded long-haul operations, the new aircraft are expected to strengthen operational capabilities and enhance premium travel services.

Delta is in the midst of reshaping its fleet to align with projected international expansion and increased demand for premium travel over the next decade. The incoming widebody aircraft are designed to boost premium seating availability on mid and long-distance international routes while also contributing to better fuel performance, thereby boosting profitability.

Following this latest development, Delta’s fleet of A330-900 aircraft will grow to 55 planes, while its A350 fleet will increase to 79 aircraft, including 20 A350-1000 jets, with deliveries expected to begin in early 2027. The extended range and advanced performance of the A350 aircraft are set to facilitate Delta’s expansion into significant long-haul destinations across Asia, Africa, the Middle East and the South Pacific. The airline has already introduced or announced routes to cities such as Taipei, Melbourne, Hong Kong and Riyadh using the A350 platform.

In another fleet-related development, Delta agreed with The Boeing Company BA to acquire 30 787-10 widebody aircraft, with options to purchase an additional 30. Aircraft deliveries are expected to commence in 2031.

In addition to enhanced fuel efficiency, the new aircraft are expected to provide better operating economics and expand Delta’s long-haul capabilities. The order to Boeingrepresents the next phase of Delta’s international growth strategy, strengthening its global footprint and building on a solid foundation for overseas expansion supported by the airline’s industry-leading domestic network and joint-venture partnerships across all major regions.

Delta has selected GE Aerospace’s GE GEnx engines to power 30 new Boeing 787-10s with options for 30 more aircraft. The agreement also includes spare engines and long-term services support. This fleet-modernization-related agreement has further boosted DAL’s long-standing partnership with GE Aerospace and enhances the former's commitment to using the latter’s engines. Delta already operates a large fleet powered by GE Aerospace and CFM (a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines).

DAL’s Price Performance, Valuation & Estimates

Shares of Delta have gained in excess of 13% over the past six months, outperforming the Zacks Transportation - Airline industry.

6-Month Price Comparison

From a valuation standpoint, DAL trades at a 12-month forward price-to-sales ratio of 0.68X, higher than industrial levels. 

The Zacks Consensus Estimate for full-year 2026 and 2027 earnings per share has improved in the past 60 days.

DAL's Zacks Rank

DAL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  

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This article originally published on Zacks Investment Research (zacks.com).

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