Delta Expands Fleet Simplification Plans

Early in the COVID-19 pandemic, Delta Air Lines (NYSE: DAL) decided to accelerate its fleet simplification plans while demand was depressed. On April 30, Delta announced that it would permanently retire its MD-88 and MD-90 fleets in early June. Two weeks later, it said it would phase out its Boeing 777s by year-end.

In late June, I suggested that Delta Air Lines might not be done with fleet restructuring. Sure enough, the company recently announced that it will retire three additional aircraft models earlier than previously planned.

Under prior CEO Richard Anderson, Delta Air Lines embraced (and mastered) the complexity of operating numerous aircraft types in its fleet. By opportunistically snapping up used jets that other airlines didn't want, Delta was able to minimize capital expenditures following the Great Recession, helping it rapidly pay down debt.

Source Fool.com