Delta Airlines (NYSE:DAL) recently ordered 20 A350-1000 widebody aircraft from Airbus Group (EADSF) to expand its long-haul operations. The delivery of these jets is scheduled to commence in 2026. Additionally, the airline company has secured the option to purchase another 20 aircraft of the same type.
The company said that improved fuel efficiency stands as a key advantage. Further, the A350-1000s will elevate Delta’s international widebody fleet with higher-gauge cabins, offering more premium seating options and catering to evolving passenger preferences.
It is worth mentioning that the new aircraft will replace Boeing 767s from DAL’s existing fleet. BA’s recent trouble with an Alaska Airlines (ALK) flight might have been one of the reasons for DAL to opt for another jet.
Is DAL a Good Stock to Buy?
The expansion of premium seating capacity might help boost the related revenue even further. In the past few quarters, the company has observed a trend of premium cabins generating higher revenues than low-cost seats. Thus, it would be reasonable to expect an improvement in DAL’s financials.
Overall, analysts have a Strong Buy consensus rating on DAL stock based on nine unanimous Buys assigned in the past three months. The average Delta stock price target of $55 per share implies 43% upside potential. Shares have declined by over 17% in the past six months.
