American Airlines orders 260 new aircraft

American Airlines said on Monday it had agreed to buy a total of 260 new jets from Airbus, Boeing and Embraer, as the carrier targets increased capacity to meet soaring demand for travel.

Major airlines are racing to place orders for new, more fuel-efficient aircraft as they try to cash-in on booming air travel demand while keeping costs in control.

The deal includes 85 Airbus A321neo jets, 85 Boeing 737 MAX 10s and 90 Embraer E175 aircraft, American Airlines said in a statement.

Its orders also included options and purchase rights for an additional 193 aircraft.
The airline expects to remain within its previous forecast for capacity and capital expenditures inclusive of the aircraft orders.

Airlines have been scrambling for scarce Airbus production slots after Boeing came under scrutiny following a January accident in which a cabin panel tore off of an Alaska Airlines 737 MAX jet mid-flight.

American Airlines’ order for 737 MAX 10s comes amid regulatory certification delays for the largest version of Boeing’s best-selling jet family.

“We deeply appreciate American Airlines’ trust in Boeing and its confidence in the 737 MAX family,” said Stan Deal, CEO of Boeing Commercial Airplanes.

Rival United Airlines, however, is in talks with Airbus for a potential mega order to replace hundreds of MAX 10s on order from Boeing, Reuters reported.

American Airlines is planning for the future with the new order of 737 MAX 10s and looks forward to certification of the aircraft, it said in a statement on Monday.