Delta Air Lines Returns to Its Used-Jet Roots
A decade ago, Delta Air Lines (NYSE: DAL) became known as a savvy acquirer of used aircraft. However, as its fleet aged and its cash flow surged toward the middle of the past decade, Delta began ordering brand-new jets in increasing numbers. By late 2019, management was talking about a new fleet strategy focused on fleet simplification and a shift to new-technology aircraft.
However, the COVID-19 pandemic caused Delta to rethink its fleet strategy once again. The airline has regained interest in used jets and has reportedly finalized at least two deals for used aircraft recently.
Delta exited the Great Recession with a weak balance sheet and plenty of aircraft in need of replacement: most notably, 71 DC-9s that were 35 years old on average. It also needed to expand its fleet over the following years to take advantage of the recovery in air-travel demand.
Source Fool.com
