Delta Air Lines Inc said on Tuesday that in agreement with Boeing Co it would cancel an order for 18787 Dreamliner aircraft, which it assumed as a part of its merger with NorthwestAirlines.
The order is valued at more than $4 billion at current list prices. Delta, in its statement, did not disclose specific terms of the agreement.
The airline, which acquired Northwest in 2008for $2.6 billion in shares, said it would continue to take delivery of 737-900ER aircraft through 2019. Delta declined to comment beyond its statement.
The cancellation comes as Delta and other top U.S. airlines seek to slow flight capacity growth and in some instances shrink existing service in response to falling airfares.
Airlines like Norwegian Air Shuttle ASA from outside the United States are adding flights that Delta says have exceeded passenger demand and hurt unit revenue.
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