Delta ditches plans for new jets

Atlanta

DELTA Air Lines Inc abandoned plans to add at least US$4 billion of Boeing Co and Embraer SA jets after union pilots rejected the contract needed to trigger the deal.

"Those orders will be cancelled," chief executive officer Richard Anderson said on Wednesday in a conference call without elaborating. He spoke after Delta posted a second-quarter profit that beat analysts' estimates and slowed growth in seating capacity.

Delta's decision erases the purchase of 40 Boeing 737-900ERs and 20 Embraer E190s, which the airline linked to ratification of the proposed contract. The Air Line Pilots Association (Alpa), whose members at Delta voted almost two …