Delta Air Lines, Inc. (NYSE:DAL) has confirmed the acquisition of 100 Airbus jets.
The airline announced that it would be buying these A321neo jets for $25 billion to go along with an optional 100 more of the aircraft. Delta Air Lines announced the move through a filing with the U.S. Securities and Exchange Commission.
The company added that it expects deliveries of the aircraft to begin in the first quarter of 2020 and continuing to arrive through 2023. Delta added through the SEC filing that it now expects its operating margin of its fourth quarter to be 11%.
The company previously said that it expected this figure to be between 11% and 13% in its previous forecast. Airbus beat out Boeing Co (NYSE:BA) for the move as Boeing and Delta have had a fraught relationship in recent quarters.
The disagreements between the two companies began in October following Boeing’s success in lobbying the U.S. Commerce Department to pass trade duties of roughly 300% of Delta’s decision to order CSeries jets from Bombardier Inc (OTCMKTS:BDRBF).
Delta has made no mention regarding whether or not the disagreement between the two companies affected the airline’s decision to go with Airbus for the deal.
“This is the right transaction at the right time for our customers, our employees and our shareholders,” CEO Ed Bastian said in a statement today.
DAL stock gained 2.8% on Thursday.