Virgin America Applies Brakes to Fleet Growth
Virgin America’s new fleet plan includes the cancellation of 20 delivery positions for Airbus A320s. (Photo: Virgin America)
Virgin America’s new fleet plan includes the cancellation of 20 delivery positions for Airbus A320s. (Photo: Virgin America)

More evidence of capacity constraint among U.S. airlines appeared in a recent quarterly earnings report from one of the fastest-growing carriers in the country. Virgin America, which has seen annual available seat mile (ASM) growth average 28 percent for the past three years, has reconsidered its fleet expansion strategy and said it would move to cut the number of airplanes it plans to add over the rest of the decade. Under a revised agreement reached with Airbus, Virgin America’s order for current-generation A320s will shrink from 30 airplanes to 10, all scheduled for delivery in 2015 and 2016. Virgin America has also opted to delay delivery of 30 A320neos from the originally scheduled 2016 through 2019 to a new time span ranging from 2020 through 2022.