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DALLAS (AP) — American Airlines on Monday announced a large order for new aircraft, purchasing 260 from Boeing, Airbus and Embraer to meet growing travel demand and increase the airline’s supply of premium seats. The new aircraft was divided.
American Airlines said it will have options for up to 193 additional aircraft over the next few years.
The airline and aircraft manufacturer did not disclose financial terms of the order.
The order package includes 85 Boeing 737 Max 10s, a larger version of the Max that has not yet been certified by U.S. regulators. The plane is already years behind schedule, and United Airlines, which has 277 planes on order, has removed the Max 10 from its plans, at least temporarily.
Boeing has been under intense scrutiny from the Federal Aviation Administration as it tries to resolve issues with its manufacturing systems, especially after a panel blown off during an Alaska Airlines Max 9 flight in January.
But American Airlines gave the US aircraft maker a vote of confidence, even converting its previous order for 30 Max 8s to the larger Max 10.
Boeing also ordered 85 A321neos from Airbus, Boeing’s European rival. The A321 and Max 10 are about the same size.
The Fort Worth, Texas-based airline also ordered 90 smaller E175 aircraft from Brazil’s Embraer.
All of these planes are single-aisle, so-called narrow-body planes that American plans to use to fly within the United States and to nearby international destinations. In a presentation to analysts on Monday, American Airlines called its short-haul network “the foundation of value for our customers and investors.”
Robert Isom, CEO of American Airlines, said the airline has made significant investments over the past decade and has expanded its fleet to more than 600 aircraft, including those used by regional affiliates. He said the fleet is already the largest of any U.S. airline.
“This order enables our fleet to continue to introduce newer, more efficient aircraft and continue to provide our customers with the best network and record-setting operational reliability,” Isom said in a statement. Stated.
American Airlines currently has 440 planes on order, some of which aren’t scheduled for delivery until next year.
American Airlines is aiming to join rivals Delta Air Lines and United Airlines in attracting premium passengers. American Airlines has announced that it will retrofit its current Airbus A319 and A320 aircraft to install power outlets in every seat and increase the number of first class seats.
These upgrades and new aircraft will help American Airlines increase the number of premium seats on its planes by more than 20% by 2026. This is key to the airline’s strategy: American Airlines said on Monday that frequent flyer members and other customers who purchase premium will earn 80% of its revenue this year, up from 70% in 2017. It is expected to increase from
American Airlines announced its widely anticipated aircraft order hours before an investor meeting with Wall Street analysts in New York.
U.S. executives did not update their earnings forecasts for the first quarter or 2024 in January. They say capital spending on aircraft will increase from $1.9 billion last year to $2.3 billion this year, and to $3 billion to $3.5 billion annually through 2030.
American Airlines Group stock fell more than 5% by the end of regular trading.
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This article has been corrected to show that United ordered 277 Max 10s, not 100.
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