Delta Air Lines delays taking delivery of 10 A350 jets

A330-300 Delta Air Lines

(Reuters) Delta Air Lines Inc  said on Thursday it was delaying taking delivery of 10 Airbus A350-900 jets and placed a fresh order for 30 smaller A321-200s, putting a question mark on the demand for wide-body aircraft.

Airbus shares were down 2.1 percent at 73.64 euros in Paris, while Delta fell 1.7 percent to $49.07 on the New York Stock Exchange.

Delta’s decision comes after larger U.S. rival American Airlines Group Inc said in April that it had also delayed taking delivery of several wide-body Boeing Co and Airbus jets.

An oversupply in the market of long-distance wide-body aircraft has led to airlines postponing deliveries.

Delta said it would delay taking deliveries of 10 of the 25 A350-900 aircraft by about two to three years. The aircraft were to be delivered by 2019-20.

“These agreements better align our widebody and narrowbody order books with our fleet replacement needs,” Delta’s Chief Operating Officer Gil West said in a statement.

AerCap Holdings NV, the world’s largest independent aircraft leasing company, on Wednesday played down concerns about weakening demand for wide-body jets, saying there was “good solid demand” for the aircraft globally.

Delta said on Thursday delivery schedule for its first A350-900 aircraft was on track, and plans to operate the first flight in the fourth quarter of 2017.

The company plans to take delivery of five A350s in 2017.

Reuters