On Monday, American Airlines announced an order for 260 new narrow-body jets, which includes a substantial purchase of Boeing’s long-awaited 737 Max 10, along with other aircraft.
The order comprises 85 Boeing 737 Max 10 planes, 85 Airbus A321neo jets, and 90 Embraer E175 aircraft, which the airline plans to use for domestic and short-haul international routes.
This significant order serves as a boost for Boeing, which has been facing delays and production issues. Boeing has struggled with certifying new aircraft models, with timelines extending far beyond initial expectations.
United Airlines CEO Scott Kirby previously mentioned that his airline had been forced to reconsider its fleet strategy due to the Max 10 delays.
American’s Chief Financial Officer, Devon May, reassured stakeholders by noting that the airline has flexibility in its agreements.
American has additional options with Airbus and financial protections in place with Boeing, including the ability to switch to already-certified aircraft if the Max 10 certification is delayed further.
May stressed, “We don’t in any way want to be harmed financially through any of these aircraft orders.” American currently expects the Max 10 deliveries to begin in 2028.
The Max 10, the largest model in Boeing’s Max series, will feature approximately 190 seats, including 20 first-class seats, similar to the configuration of American’s Airbus A321neo aircraft. However, it will not offer lie-flat seats, which are typically reserved for longer-haul flights.
Additionally, American plans to convert 30 of its orders for Boeing 737 Max 8 planes, which already form a key part of its fleet, into larger 737 Max 10 models.
The airline’s new order also includes options to purchase an additional 193 aircraft across the three manufacturers involved.
Boeing, however, continues to face regulatory scrutiny. The Federal Aviation Administration (FAA) is investigating an incident in which a door plug blew out mid-flight on an Alaska Airlines Boeing 737 Max 9 earlier this year, further intensifying the focus on the company’s safety protocols.
In conjunction with its aircraft order announcement, American Airlines outlined plans to expand its first-class seating options on its narrow-body jets.
Beginning in 2025, the airline will retrofit its older Airbus A319 and A320 aircraft, increasing the number of first-class seats from eight to 12 on the A319 and from 12 to 16 on the A320.
American is also phasing out its 50-seat, single-class regional jets by the end of the decade in favor of two-class planes.
These updated regional jets, operated by American’s wholly-owned regional carriers, will feature in-seat power outlets and satellite Wi-Fi.
The new aircraft orders are part of American’s previously established capital expenditure plans.
Airlines are increasingly responding to growing demand for first-class and premium seating, driven in part by customers who accumulate frequent flyer points through credit cards and are willing to pay more for extra comfort.
American revealed on Monday that it expects roughly 80% of its 2024 revenue to come from “premium content,” which includes products beyond the basic economy fare, as well as from its loyalty program.
This marks a significant increase from the 70% share in 2017.
