American Airlines nears jet order tilted toward Airbus, Bloomberg reports

By Thomson Reuters Feb 27, 2024 | 2:56 PM

(Reuters) – American Airlines is close to placing an order for about 100 narrowbody jets split between Airbus SE and Boeing, with the European planemaker likely to secure the larger part, Bloomberg News reported on Tuesday, citing people familiar with the talks.

A deal could be announced in coming weeks, although the final mix of Airbus A321 and Boeing 737 Max 8 jets is still being negotiated, the report said.

The deal will secure replacements for some of the oldest jetliners in American’s fleet in a constrained market for new aircraft, the report added.

Boeing’s troubles with its 737 MAX jets, after last month’s incident when a cabin panel tore off of an Alaska Airlines jet mid-flight, has upended the aerospace industry’s 2024 plans.

American was looking to place a new order for planes for deliveries in 2027 and beyond. Chief Financial Officer Devon May told Reuters last month the carrier was talking to Boeing, Airbus, and Embraer for the new order, but was mindful of Boeing’s ongoing issues.

“We absolutely take current events into consideration as we’re going through our analysis of this order,” May said in the interview last month.

Airbus declined to comment when contacted by Reuters, while Boeing and American Airlines were not immediately available for a comment.

(Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh Kuber)