Delta Might Not Be Done With Fleet Restructuring
The COVID-19 pandemic caused air travel demand to crash, upending the airline industry. One major result is that airlines have had to completely rethink their fleet strategies. Most airline executives expect demand to remain depressed for several years, which means that fewer aircraft will be needed in the short term.
The silver lining is that airlines are now thinking more strategically about their fleets -- and considering moves that could be painful now but drive substantial cost reductions in the long run. Delta Air Lines (NYSE: DAL) is being particularly aggressive on this front, and it may have some of the biggest long-term opportunities as it upgrades and simplifies its fleet.
In late April, Delta announced that it would accelerate the retirement of two older jet models: the MD-88 and MD-90. The MD-88s were already scheduled to retire later this year, followed by the MD-90s in 2022, but the final flights were moved up to early June.
Source Fool.com
