Originally Posted by David Puddy

Airbus's slow production rates + the P&W engine issues have not helped with orders. Existing customers want the extended version because they see low CASMs already with the 300 - adding more seats to a slightly extended airframe will further reduce the CASM and improve profits.

In terms of cannibalization, I guess that is possible with the A320 Neo - but Delta hasn't ordered any of them. However, most airlines (like Delta) are ordering the bigger A321 NEO which would not compete with the proposed A220-500 in terms of seat numbers. Instead, the A220-500 would be a very cost-effective replacement for older A319/20s and 737-800s - and Delta has a BUNCH of these older airframes to replace. Just the lower CASM alone on the proposed A220-500 means the required breakeven load factor is reduced and per-flight profitability increases at a lower occupied seat number. Imagine being able to generate more profit with fewer seats filled on the same routes.... Bottom line: your profit checks would be FATTER with more A220-330s and 500s.