Delta forced to keep MD88s flying due to Bombardier delay

 With the ongoing delay for the Bombardier C Series aircraft, Delta announces that they will keep their 108 McDonnell Douglas MD-88s in service until 2020.

  Delta 75 CS100s on order were previously expected to begin later this year. However, as Bombardier needs to move the production site to Mobile, Alabama to ensure no traiffs will be imposed, the delivery dates are expected to slip backwards again.

  Delta is now being forced to boost maintenance spending on the aging MD-88s until the type is fully replaced. Delta saw its maintenance spending rise 9% in 2017 to just under $2 billion. Older planes also mean higher fuel costs. Delta said its fuel expense rose $350 million in the third quarter and that it paid an average of $1.93 a gallon, which is higher than average airlines (airlines mostly use 20% of their operation costs on fuel) Expecting to have overall costs grow by 4% this quarter, Delta said it would try to trim costs for hotels, transportation and fleet management.

  Despite the rising maintenance cost, the second largest carrier in America sucessfully gained high revenue and profits this year. Mostly due to the rose in passenger revenue in all the regions where it operates, the new taxation system paid a significant part. 

Delta regional fleet mainly consists of Boeing 737, Airbus A319 and Airbus A320. This limits its earnings even when passenger demand is high. With the introduction of A321neo and more 737-900, the carrier expects to grow capacity around 3 percent this quarter, while increasing revenue per each seat it flies — a key industry metric — to a gain of 2.5 to 4.5 percent.  

In addition, Delta, like its competitors, has sliced up its economy cabins and rolled out new premium cabins to encourage passengers to pay for more room on board and other amenities. 

And with little flexibility and no free checked bags on basic economy, Delta hopes to drive passengers to a more-expensive, full-service economy fare. 

all photos kindly provided by @atlanta.spotting on Instagram

source: the Seattle Times