American Airlines Flight 718, a Boeing 737 Max, took off from Miami International Airport on December 29, 2020, bound for New York in Miami, Florida.
Joe Reddell | Getty Images
American airlines said on Monday it would order 260 new narrow-body jets, including dozens of Boeing’s The long-delayed 737 Max 10.
The order includes 85 Boeing 737 Max 10 aircraft and 85 Airbus A321neo aircraft, which it said will help it improve its domestic and short-haul international routes. The Fort Worth, Texas-based airline has also ordered 90 Embraer E175 aircraft.
American’s order is a vote of confidence in Boeing, which is facing a series of production defects and problems with certification of new planes that are taking several years longer than initially expected. Scott Kirby, CEO of rival carrier United Airlinessaid earlier this year that his airline had been weighing plans to cancel its fleet of Max 10 planes due to flight delays.
American Airlines Chief Financial Officer Devon May said the airline has the additional Airbus option for new planes, as well as financial protection from Boeing, and can use already certified models if Max 10 certification is further delayed. .
“We do not want to suffer financial losses in any way from these aircraft orders,” May told reporters on Monday.
American currently expects Max 10 deliveries to begin in 2028, May said.
He noted that the Max 10, the largest plane in the Max family, will not have lie-flat seats but will be configured like some of the airline’s A321neo aircraft, with about 190 seats and about 20 first-class seats in the front row. .
American Airlines said it would also convert an order for 30 Boeing 737 Max 8 aircraft, which has become the mainstay of its fleet, to the larger 737 Max 10. The order includes options for an additional 193 aircraft from the three manufacturers.
Boeing is facing additional scrutiny from the Federal Aviation Administration after a door jam exploded in mid-air on an Alaska Airlines flight in January. The flight is operated by a Boeing 737 Max 9.
American Airlines also said Monday during its first investor day in more than six years that it is planning to add first-class cabins on some of its narrow-body aircraft. Starting in 2025, it will retrofit its older Airbus A319 and A320 aircraft, increasing the number of first-class seats from eight to 12 and 12 to 16 respectively.
The airline plans to retire its 50-seat, single-class regional jets by the end of the decade in favor of two-class aircraft equipped with in-seat power and satellite Wi-Fi. The aircraft will be operated by regional airlines wholly owned by American Airlines.
The aircraft orders were included in American’s previous capital spending targets.
Airlines have been struggling to cope with high demand for first-class and other premium seats as more customers accumulate points on their credit cards and appear willing to spend money on more space on board.
American Airlines said on Monday it expects about 80% of its revenue this year to come from “premium content,” products beyond its cheapest fares and its loyalty program, up from 70% in 2017.
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