Delta Air Lines (DAL) Stock: Why It Increased Over 4% Today

By Amit Chowdhry ● Jul 18, 2022
  • The stock price of Delta Air Lines, Inc. (NYSE: DAL) increased by over 4% during intraday trading today. This is why.

The stock price of Delta Air Lines, Inc. (NYSE: DAL) increased by over 4% during intraday trading today. Investors are responding positively to Boeing and Delta Air Lines announcing the U.S. carrier will modernize its single-aisle fleet with the highly efficient 737 MAX to meet demand as well as its long-term sustainability goals. In a signing ceremony at the Farnborough International Airshow, the companies said Delta is ordering 100 737-10 jets – selecting the largest member of the 737 MAX family – with options for an additional 30 airplanes.

The 737-10 is going to provide Delta Air Lines with the best per-seat economics of any single-aisle Boeing model, reducing fuel use and emissions by 20-30 percent compared to the airplanes it replaces. And the jet can cover 99% of single-aisle routes around the world, seating up to 230 passengers with a maximum range of 3,300 nautical miles.

As part of the announcement, Delta Air Lines has also contracted with Boeing Global Services for a full interior reconfiguration of 29 Next Generation 737-900ERs in its fleet. And this will support having these airplanes ready to enter Delta Air Lines 2025 summer schedule with fully refreshed interiors.

One of the world’s largest carriers, Atlanta-based Delta Air Lines operates a fleet of more than 850 mainline aircraft, including more than 450 Boeing 717s, 737s, 757s and 767s.

KEY QUOTES:

“The Boeing 737-10 will be an important addition to Delta’s fleet as we shape a more sustainable future for air travel, with an elevated customer experience, improved fuel efficiency and best-in-class performance. These new aircraft provide superior operating economics and network flexibility, and the agreement reflects our prudent approach to deploying our capital.”

“This aircraft will be piloted, served and maintained by the very best professionals in the business, and it’s their hard work and dedication to our customers that always sets us apart.”

— Ed Bastian, Delta’s chief executive officer

“We are proud that Delta Air Lines, is renewing its single-aisle fleet with the 737 MAX, the industry’s most fuel-efficient family of airplanes. Built in our factory in Washington state with support from key suppliers across the US, the 737-10 will provide Delta Air Lines with the best economics to carry more passengers across its short and medium-haul routes.”

— Stan Deal, president and CEO of Boeing Commercial Airplanes

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.