Delta still flying all of its Airbus A220s even as the coronavirus grounds more than half its fleet
Delta Air Lines is still flying all of its new Airbus A220s even as it grounds more than half of its fleet in response to the novel coronavirus pandemic, which has knocked out nearly all demand.
The Atlanta-based carrier had temporarily parked 325 of its 874 mainline aircraft at the end of March as it works towards parking some 650 planes, Delta said in a first quarter financial disclosure. While the airline was still flying every type in its fleet, it notably had not parked any of its 31 A220-100s.
The A220s are among Delta's newest jets. The aircraft, developed by Bombardier, is the first all-new commercial narrow-body jet by a western planemaker since the introduction of the Embraer E-Jet in 2004. Delta introduced the A220-100 in February 2019 and has firm orders for another 64 planes.
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The only other jet that Delta has not removed any of were its 18 remaining McDonnell Douglas MD-88s. However, the "Mad Dogs," as they are commonly known, are being retired rather than parked and will be out of the fleet in July.
The fleet changes are in the works as demand for air travel in the U.S. is at historically low levels. The Transportation Security Administration (TSA) screened 92,859 people on April 21, or just 4% of the number screened a year ago. Screenings include some airline crews.
Delta and United Airlines have both reported pre-tax losses during the March quarter that only hint at the financial carnage to come. The former lost $607 million and the latter around $2.1 billion.
Pruning fleets is one cost-saving measure that airlines are using to prepare for what will likely be a significantly smaller industry post-coronavirus. American Airlines will retire its Boeing 757s and 767s, and its Embraer E190s — the E-Jet retirements were previously planned — this year, while United has said it will begin with its 757s if it is forced to retire jets.
Related: Delta CEO says industry nears ‘bottom’ of coronavirus crisis, recovery a ways off
For Delta, the MD-88s will not be the last to go.
“Any airplane that was thought to be retried in the next five years, probably you can consider it retired this year," Delta CEO Ed Bastian told staff in a virtual town hall Wednesday viewed by TPG.
In addition to the MD-88s, the airline plans to retire its 27 remaining MD-90s by year-end, Bastian told investors during a separate call Wednesday. Delta is also looking at some of its 193 Boeing 757s and 767s, as well as some of the 118 Bombardier CRJ-200s in its feeder fleet for retirement this year.
Bastian did not comment on the status of other aircraft types in Delta's fleet. The Air Current has reported that the airline is considering retiring its 18 Boeing 777s and is in talks with the Chicago-based planemaker about a possible deal to swap its Boeing 717s for new 737 MAX jets.
Related: A smaller Delta would have to retire planes after coronavirus. What types could go?
Swapping 717s for MAX would check many boxes. A deal would eliminate one of the older, less-efficient types in Delta's fleet at a time when removing planes is of the essence. At the same time, it would help Delta line up a new generation, efficient mid-size narrowbody to replace other similarly sized aircraft — perhaps its Airbus A320s that are on average nearly 25 years old — in a few years' time when demand recovers.
Delta expects air travel demand to recover in roughly three years, Bastian said Wednesday. He emphasized that it will not be a steady return to normalcy.
"We should be prepared for a choppy, sluggish recovery even after the virus is contained," he told staff, reiterating the word "choppy" several times.
Related: Travelers are nervous about flying again after coronavirus, IATA finds
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.