An order divided between Airbus, Boeing, and Embraer will see at least 260 aircraft, a mix of narrowbodies and regional jets, join the American Airlines fleet.
The orders for 85 Airbus A321neos, 85 Boeing 737 MAX 10 and 90 Embraer E175s include options and purchase rights for an additional 193 aircraft, including options for 75 MAX 10s, purchase rights for 43 E175s, and 75 options/purchase rights with Airbus.
American also upgauged 30 existing 737-8 orders to -10s, and voiced confidence in the manufacturer’s ability to deliver the yet-to-be-certified variant as it more than doubled its MAX orderbook. “This is a vote of confidence in Boeing,” CFO Devon May said during a March 4 investor presentation.
May added, “We expect they will be able to deliver the MAX 10 for us starting in 2028,” while noting protections secured by the airline given recent challenges, including full variant flexibility and with “sufficient Airbus option positions that we will execute if Boeing is delayed in certification or in delivery.”
Inclusive of its new orders, American still expects to remain within its previously announced guidance for capacity and capital expenditures. Of the 170 narrowbodies among its new order, 150 are set to be delivered in 2029 or later, while its E175s are expected to begin delivery in 2025. Additionally, American has moved 40 aircraft previously set to join its fleet in 2025-26 out to 2027-29.
The airline’s updated delivery outlook for 440 aircraft on order now projects 41 deliveries in 2024 (three A320neo family, 20 MAXs, six 787s, and 12 E175s), 47 in 2025 (16 A320neo family, 14 MAXs, five 787s, 12 E175s), 53 in 2026 (21 A320neo family, 10 MAXs, four 787s, 18 E175s), 51 in 2027 (31 A32neo family, five 787s, 15 E175s), 54 in 2028 (14 A320neo family, 20 MAXs, five 787s, 15 E175s), and 194 in 2029 and thereafter.
Between 2014-22, the airline has taken delivery of 630 aircraft and retired 580, streamlining a mainline fleet that as recently as summer 2019 counted nine different fleet families, a number since pared down to four. Its in-service mainline fleet currently numbers 909 and averages 13 years old, according to the Aviation Week Network Fleet Discovery database, comprising 737s (349), 777s (60), 787s (55), and A320 family (445).
The carrier will begin retrofitting its A319s and A320s in 2025, installing new seats and expanding their first-class seating capacity, amid growing demand for more premium experiences. It also plans to retire its 50-seat single-class regional jets before the end of the decade, instead serving small and medium-size markets with larger, dual-class regional jets operated by its wholly owned subsidiaries. Its premium seating is expected to grow by more than 20% by 2026, inclusive of the expected deliveries and its refresh.
In addition to driving premium capacity growth for the airline, American’s latest investment in its fleet renewal will allow it to upgauge aircraft on domestic and short-haul international routes, and further smooth deliveries and capex over the remainder of the decade. The carrier won’t find itself in a position of being locked into outsized growth, executives stressed.
“In 2025 and beyond we have a fleet that allows for a wide range of growth outcomes depending on the demand environment we are in,” added May. “Assuming no aircraft retirements and modest improvements to utilization, we can produce mid-single digit capacity growth, but we also have the flexibility to grow at a much slower rate or to not grow at all if we find ourselves in a soft demand environment.”
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