{"id":2192886,"date":"2024-03-05T11:12:02","date_gmt":"2024-03-05T16:12:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/american-airlines-places-its-biggest-plane-order-in-more-than-a-decade\/"},"modified":"2024-03-05T11:16:48","modified_gmt":"2024-03-05T16:16:48","slug":"american-airlines-places-its-biggest-plane-order-in-more-than-a-decade","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/american-airlines-places-its-biggest-plane-order-in-more-than-a-decade\/","title":{"rendered":"American Airlines makes largest plane purchase in over 10 years"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Famerican-airlines-places-its-biggest-plane-order-in-more-than-a-decade%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2192886&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><strong>March 4, 2024 \u2013 2:44 PM PST<\/strong><\/p>\n<p><strong>NEW YORK (Reuters)\u200c \u2013 American Airlines (AAL.O) on Monday unveiled its biggest plane order since 2011, \u200bbuying 260 new jets from Airbus (AIR.PA), Boeing (BA.N) and Embraer (EMBR3.SA) as it looks to increase earnings by capitalizing on booming demand for premium travel.<\/strong><\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The deal includes 85 Airbus A321neo jets, 85 Boeing \u2062737\u200d MAX 10s and 90 Embraer E175 aircraft. The order also includes options and purchase rights \u2062for an additional 193 aircraft.<\/p>\n<p><strong>\u201c(Travel) demand is back,\u201d American Airlines\u2019 CEO, \u200bRobert Isom, told an investor conference.<\/strong><\/p>\n<p>The order is also a big boost for Boeing, which has been under fire since a Jan. 5 incident when a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/faa-launches-probe-of-boeing-737-max-9-after-midair-door-plug-blowout\/\" title=\"FAA investigates Boeing 737 Max 9 after door plug incident\">door plug blew<\/a> off \u200da 737 MAX plane in mid-flight, exposing frightened passengers to the \u200boutside air.<\/p>\n<p>This is American\u2019s first-ever order for the MAX 10, the largest variant of Boeing\u2019s best-selling single-aisle 737 \u200dMAX planes.<\/p>\n<p>The aircraft has yet to be certified by the U.S. Federal Aviation Administration (FAA). The Jan. 5 incident has raised new doubts over its certification.<\/p>\n<p>American\u2019s\u200c chief financial officer, Devon May, said the order reflects the airline\u2019s confidence in Boeing, adding it offers\u200b fleet flexibility to the company as it provides an alternative to\u2062 its \u2063Airbus A321 planes.<\/p>\n<p>Its first MAX \u206410 plane is due for\u200b delivery in \u200d2028. But if delivery is delayed, the company has negotiated with Airbus for sufficient options, he said. The Texas-based airline also has options to convert\u2063 those orders into MAX 8 or MAX 9.<\/p>\n<p>\u201cOur first MAX 10 delivery is going to happen in 2028,\u201d May told reporters on the sidelines of American\u2019s\u2063 investor conference. \u201cIt gives Boeing a lot of time to actually get\u200c the airplane certified and then deliver it on time.\u201d<\/p>\n<p>Reuters has reported that \u200drival United Airlines (UAL.O) is in talks with Airbus for a potential mega order to replace hundreds of MAX \u200b10s on order\u2063 from Boeing, as airlines \u2063scramble for scarce Airbus production slots.<\/p>\n<p>May expressed confidence \u2063that Boeing would \u2063\u201cget it right,\u201d saying the U.S. planemaker was \u201ctaking the \u200bright steps.\u201d<\/p>\n<p>\u201cIt\u2019s probably going to\u2064 take some time,\u201d he \u2063said.<\/p>\n<p>American Airlines shares fell 5.4% to close \u200dat $14.81 on Monday.<\/p>\n<p>The new plane order is expected to enable American to add more high-margin premium seats on its domestic and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/united-airlines-to-announce-order-for-110-airbus-boeing-jets-sources\/\" title=\"United Airlines set to purchase 110 Airbus and Boeing jets, according to sources.\">short-haul international routes<\/a>.<\/p>\n<p>American, United and Delta Air\u2062 Lines (DAL.N) have all benefited from increased demand for premium travel \u2064after the pandemic.<\/p>\n<p>The company is also looking to drive up revenue from its co-branded credit cards. The programs have become\u2063 a cash-generator for carriers \u200cthrough sale of miles to third-party partners.<\/p>\n<p>American expects its profit margin to jump to 15%-18% in 2026, up from 14% estimated for this year, resulting in a free cash flow\u200c of more than $3 billion.<\/p>\n<p><sup>Reporting by Rajesh Kumar Singh in New York and Shivansh Tiwary and Aishwarya\u2064 Jain\u200b in Bengaluru Additional reporting \u2064by\u200c Tim Hepher in\u2062 Paris; Editing by\u2062 Devika Syamnath, Shilpi Majumdar and Matthew Lewis<\/sup><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t<strong>Share \u2064this post!<\/strong>\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Supreme Court blocks Colorado\u2019s Trump Insurrection ban, Texas will start arresting Illegal Aliens and Nikki Haley wins DC<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Super Tuesday is only hours away. Both Republicans and Democrats \u2064will \u2063have elections in 15 states.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>On\u200d Monday, the Supreme Court\u2062 ruled unanimously in favor of\u200d 45th President Donald Trump in the Colorado ballot case, saying Trump must appear on the ballot.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Super Tuesday is on March\u200b 5th. Voters in California will head to the polls. This comes as the GOP is seeing a bump in\u200d registered voters in the state.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Bitcoin\u200b hit\u2063 a record\u200c high, fueled by investors pouring money into U.S. spot\u200c exchange-traded \u200bcrypto products.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>SpaceX will appear before a \u200dU.S. labor board judge to face claims that it fired engineers for criticizing CEO Elon Musk.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Apple is betting that the more powerful models would attract consumers looking to upgrade to AI-powered PCs.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Elon Musk alleges a breach of contract and a\u2063 departure from the original mission to develop AI for humanity\u2019s benefit.<\/strong><\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What is the purpose \u2064of American Airlines&#8217; major plane order?<\/h2>\n<p><span>  G by Lisa Richwine in \u2064Los Angeles Editing \u200cby Maju Samuel<\/sup><\/p>\n<\/p><\/div>\n<p><\/body><\/html><\/p>\n<p>American Airlines Announces Major\u200d Plane Order to Meet Rising Demand for Premium \u2062Travel<\/p>\n<p>March 4, 2024 &#8211; American \u200cAirlines, one of the largest airlines in the United States, has revealed\u2062 its biggest plane order since 2011. The airline\u200c plans to purchase 260 new jets from three different manufacturers \u200c- Airbus, Boeing, \u2063and Embraer &#8211; in order to capitalize on the\u2062 growing demand for \u200dpremium travel and\u200c increase its earnings. \u2064 <\/p>\n<p>The deal\u2064 includes 85 Airbus A321neo \u2062jets, 85 Boeing\u200d 737 MAX \u206210s, and\u2064 90 Embraer E175 aircraft. American Airlines has\u2064 also\u200c secured options and purchase rights for an additional \u200c193 aircraft, allowing for future flexibility and expansion. <\/p>\n<p>&#8220;(Travel) \u200bdemand is back,&#8221; said Robert Isom, the CEO of American Airlines, during an investor conference. This move\u2063 reflects \u2064the airline&#8217;s confidence\u2064 in the return of travel and its commitment to meeting the evolving \u2063needs of\u2062 its customers.<\/p>\n<p>The\u200d order is particularly significant for \u2062Boeing, as\u2064 it comes at a crucial time for\u200d the aircraft manufacturer. Boeing has been facing scrutiny and \u2062criticism since a January 5 incident involving \u2064a 737 MAX plane, where a\u2062 door plug blew off mid-flight, causing\u200d passengers to be exposed\u2064 to the outside air. This \u2064plane order from American Airlines reinforces \u2062their trust in Boeing&#8217;s ability to address\u200b safety concerns and deliver reliable aircraft.<\/p>\n<p>Notably,\u2062 this order marks American Airlines&#8217; first-ever purchase of the MAX 10 variant,\u200d which is the largest model in \u2063Boeing&#8217;s popular single-aisle 737 \u200cMAX series. \u200dHowever, the MAX 10 is yet to be certified by the U.S. Federal Aviation Administration (FAA), and the\u2063 recent incident has\u200c raised questions about its \u200ccertification. American Airlines\u2063 remains optimistic about \u2063the certification process, expressing confidence in Boeing&#8217;s\u200b ability to resolve \u2062any issues.<\/p>\n<p>Devon May, the chief financial officer of American Airlines, stated\u200c that the\u2063 order provides fleet flexibility and offers an alternative to the airline&#8217;s existing Airbus A321 \u2064planes. \u200bThe first delivery of the MAX 10 is expected in 2028, with the company\u2062 having negotiated options with Airbus as a contingency plan. American Airlines also retains the\u2064 option to convert these\u2064 orders to \u200cthe MAX 8 or MAX 9 models\u2063 if necessary.<\/p>\n<p>While American Airlines makes this major \u200caircraft purchase, its competitor United\u2064 Airlines is reportedly in talks with Airbus \u2063for\u2064 a potential mega \u2063order to \u200creplace their existing orders for the MAX 10 \u200dfrom Boeing. The demand\u200d for Airbus production slots has \u200cintensified, leading some carriers to explore alternative options.<\/p>\n<p>Despite the current challenges, American Airlines remains confident in Boeing&#8217;s ability to address safety concerns \u200cand meet delivery timelines. However, they acknowledge that the\u2062 process may take time and they \u2063will closely monitor\u2064 developments.<\/p>\n<p>Following the announcement \u200bof \u200cthis \u200dplane order,\u2063 American Airlines&#8217; shares experienced a decline of 5.4%, closing at\u200b $14.81 on Monday.<\/p>\n<p>This significant investment\u2064 in new aircraft is expected to \u2064enable American\u2062 Airlines to add more high-margin premium seats \u2063on its domestic and short-haul international routes. \u200bAs with\u2062 other major\u200c U.S. carriers like United and Delta, American Airlines\u2062 has witnessed a surge in demand for\u200d premium travel following the COVID-19 pandemic.<\/p>\n<p>In addition to increasing premium travel offerings, American Airlines aims to boost revenue through \u2064its\u2062 co-branded \u200bcredit cards. These\u2064 programs \u200dhave \u200dbecome a lucrative source of income for airlines,\u2063 as they sell miles to third-party partners.<\/p>\n<p>With this ambitious plane order, American\u200d Airlines anticipates its profit margin to rise to 15%-18% by 2026, surpassing the estimated \u200c14% for this year. The airline also expects a significant increase \u200bin free cash flow, exceeding $3 billion.<\/p>\n<p>As American Airlines \u2062looks towards \u2062the future, this major plane order showcases\u200c their commitment to meeting customer demand, expanding their network, and continuing their growth \u200btrajectory in the highly competitive aviation industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>March 4, 2024 \u2013 2:44 PM PST NEW YORK (Reuters) \u2013 American Airlines (AAL.O) announced its largest plane order since 2011, purchasing 260 new jets from Airbus (AIR.PA), Boeing (BA.N), and Embraer (EMBR3.SA). The aim is to boost earnings by tapping into the growing demand for premium travel. The deal comprises 85 Airbus A321neo jets and 85 Boeing 737s<\/p>\n","protected":false},"author":1911,"featured_media":2192887,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/2023\/10\/GettyImages-1229908746-scaled-e1698269570613.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2192886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/2023\/10\/GettyImages-1229908746-scaled-e1698269570613.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2192886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2192886"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2192886\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2192887"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2192886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2192886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2192886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}