UPDATE 1-Delta delays taking delivery of 10 A350 jets

(Corrects headline and paragraph 1 to clarify that Delta has delayed taking delivery of "10" wide-body A350 Airbus jets)

May 11 (Reuters) - Delta Air Lines Inc said on Thursday it was delaying taking delivery of 10 wide-body A350-900 jets made by Airbus SE, putting a question mark over their demand, even as the no. 2 U.S. airline placed a fresh order for 30 smaller A321-200s.

Delta's decision comes weeks after larger U.S. rival American Airlines Group Inc said in April that it had also deferred delivery of several wide-body Boeing Co and Airbus jets.

An oversupply in the market of long-distance wide-body aircraft has led to deliveries being postponed.

Delta said it would delay deliveries of 10 of the 25 A350-900 aircraft by about two to three years. The aircraft are to be delivered by 2019-20.

However AerCap Holdings NV, the world's largest independent aircraft leasing company, on Wednesday played down concerns about weakening demand for wide-body jets, saying there was still "good solid demand" for the aircraft globally.

Delta said on Thursday delivery schedule for its A350-900 aircraft was in place, and it plans to operate its first A350 flight in the fourth quarter of 2017.

The company plans to take delivery of five A350s in 2017. (Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)