American Airlines is spreading its delivery timeline and its supplier base, with Embraer, Boeing, and Airbus all involved. All told, the carrier announced firm orders for 260 aircraft on Monday, part of its plan to continue to up-gauge operations and keep the fleet fresh into the next decade.
Over the past decade, we have invested heavily to modernize and simplify our fleet, which is the largest and youngest among U.S. network carriers. These orders will continue to fuel our fleet with newer, more efficient aircraft so we can continue to deliver the best network and record-setting operational reliability for our customers.
– Robert Isom, American Airlines CEO
With each of the three suppliers the airline ordered larger aircraft than those being replaced. This will result in more seats per plane flying, and also more premium seats in the sky. American will refresh its A319 and A320 planes beginning in 2025, adding power at every seat, larger overhead bins, and new seats with updated trim and finish. American’s A319 fleet will shift from 8 to 12 domestic first class seats while the A320 fleet goes from 12 to 16. By 2026 the airline expects its fleet to operate 20% more premium seats than today.
Growing American’s Airbus A321neo fleet
American’s plans include 85 more A321neos in the fleet into the next decade. This builds on the existing order book and, while presumably focused on the base model today for domestic operations, likely includes the ability to flex with the LR or XLR in the future as needed.
The A321neo deliveries will also be part of the plan for the company to reduce short-term CapEx in favor of a slower growth in the single-aisle fleet. At the end of 2023 American expected to take delivery of 59 new A320neo family planes through 2026. The total number of pending deliveries now stands at 149, but through 2026 it drops to 40 frames; 109 further deliveries come in 2027 and beyond.
Airbus had previously suggested its delivery pipeline was maxed out through the end of the decade, so American securing delivery slots is a major win for the carrier. JetBlue and Spirit Airlines recently deferred some deliveries, but not in the timeframe that American is ramping up its purchasing. And rumor had United sniffing around some of those delivery slots; this deal with American may limit its competitor’s growth abilities.
Betting on the Boeing MAX 10
American will convert 30 of its existing MAX 8 orders to the MAX 10, along with an incremental 85 of the type newly added to Boeing’s order book. The order is obviously a win for Boeing, and comes at a time where its ability to produce and deliver the airplanes ordered by customers remains unclear. The FAA recently capped production rates while continuing a review of build quality and control processes.
American is, of course, betting that Boeing will eventually get that aircraft certified and begin deliveries. But the carrier does not need that to happen particularly soon. The fleet plan announced today suggests those planes won’t join American’s operations until 2028, with 20 to come that year. The remaining 95 in the order will arrive in 2029 and beyond.
As with the Airbus order, the Boeing order also delays the near-term commitment for the airline. American previously contracted for 74 MAX deliveries through 2026. The company now expects just 44 in that timeframe. The 30 “missing” are the conversions to the MAX 10, which will arrive a few years further down the line.
Embraer takes top honors
The three-way order sees Embraer coming out on top, at least by firm aircraft orders. American will take 90 E-175s as part of the deal.
The E-175 fleet growth includes orders into the 2030s, meaning the first generation E-Jet will have a production run spanning three decades; the first was delivered in 2005. While an E2 version of the 70-seat regional jet exists, it is too heavy to qualify for use at regional airlines for American under the scope clause in the pilot contract.
Unlike the Airbus and Boeing orders, however, the Embraer deal maintains delivery pace to the airline. American already expected a dozen planes to be delivered in 2024. It will now take between 12-18 per year through the end of the decade.
By adding the additional E175s to its regional fleet American will also retire its 50-seat jets from operation. The carrier now expects those planes – already fewer than 100 across its RJ partners – to be removed from operations by the end of the decade.
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