Delta (DAL) May Place $5.3B for New Aircraft Soon (BA)
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Price: $94.62 +1.56%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +12.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
Revenue Growth %: +12.5%
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Delta Air (NYSE: DAL) is popping higher Thursday as news circulates it might be prepping for a large aircraft order.
According to Bloomberg, Delta might spend around $4.3 billion on increasing its fleet of widebody jets, which would be about 20 aircraft. Orders could be for the Airbus A330 or Boeing (NYSE: BA) 777. Deliveries for the aircraft would start within a few years.
List price on the A330 starts at $216.1 million for the 200 series model, while the lowest-cost 777 is $258.8 million for the 777-200ER.
Both the A330 and 777 are already in service with Delta.
The order would get Delta through the end of the decade, when Boeing's 787 and Airbus' A350 have had several years in service.
Delta might also move to purchase $1 billion in single-aisle jets, which include the Airbus A320 and Boeing 737.
No firm time line was given on when orders would be placed.
News comes as the two airlines recently received large orders. Boeing struck a $15.6 billion deal with Ryanair (Nasdaq: RYAAY), while Airbus received a $22.4 billion order from Lion Air.
Shares of Delta are up 0.6 percent while Boeing is just about flat early.
According to Bloomberg, Delta might spend around $4.3 billion on increasing its fleet of widebody jets, which would be about 20 aircraft. Orders could be for the Airbus A330 or Boeing (NYSE: BA) 777. Deliveries for the aircraft would start within a few years.
List price on the A330 starts at $216.1 million for the 200 series model, while the lowest-cost 777 is $258.8 million for the 777-200ER.
Both the A330 and 777 are already in service with Delta.
The order would get Delta through the end of the decade, when Boeing's 787 and Airbus' A350 have had several years in service.
Delta might also move to purchase $1 billion in single-aisle jets, which include the Airbus A320 and Boeing 737.
No firm time line was given on when orders would be placed.
News comes as the two airlines recently received large orders. Boeing struck a $15.6 billion deal with Ryanair (Nasdaq: RYAAY), while Airbus received a $22.4 billion order from Lion Air.
Shares of Delta are up 0.6 percent while Boeing is just about flat early.
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