American Airlines confirmed that it is talking with Airbus and Boeing and narrowbody aircraft in future years after Bloomberg reported that the carrier was...
While the negotiations have been underway for several months, executives aren’t yet close to a final decision, the people said.
“We continually evaluate our fleet and our future aircraft requirements,” an American spokesman said in response to Bloomberg queries. “We are talking to Boeing and Airbus about our narrowbody aircraft needs for the latter half of this decade and beyond.”American shares fell 2.3% at 10:12 a.m. in New York, while Boeing declined 2% amid a broad equity market selloff. Airbus was little changed in Paris.
An order of that size by American would add to the trend of mega-deals as demand booms for narrowbody airliners. India’s dominant carrier IndiGo, European budget leader Ryanair Holdings Plc and United Airlines Holdings Inc. are among the carriers ordering hundreds of airplanes at a time in recent months. Airlines are seeking to lock in delivery slots as production rates at Boeing and Airbus lag behind pre-pandemic levels.
“Look, we’re going to need aircraft,” Robert Isom, American’s chief executive officer, said during a town hall meeting last month. “At some point, I wouldn’t be surprised if we make a commitment to some narrowbody aircraft as we get past 2027.” The comment was first reported by the View From the Wing blog.
Isom also told employees he wasn’t worried that Indigo’s 500-jet order would preclude American from securing new planes when it wants them.“I do expect that we get appropriate regard in terms of their attention,” he said in a video viewed by Bloomberg.
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