Aviation Industry Updates: Mar 5, 2024

American Places Biggest Aircraft Order In More Than A Decade

KEY POINTS:

• American Airlines purchased 260 planes – including a significant number of Boeing's largest 737 Max airplane – in an effort to boost its domestic and short-haul international network and expand its first-class seating. 
• The Texas-based carrier placed orders for 85 Airbus A321neo, 85 Boeing 737 Max 10 and 90 Embraer E175 aircraft with the option to purchase an additional 193 aircraft.
• American is also converting its 30 existing 737 Max 8 orders to 737 Max 10 aircraft.
• American Airlines CEO Robert Isom said these orders "will continue to fuel our fleet with newer, more efficient aircraft so we can continue to deliver the best network and record-setting operational reliability for our customers."

United Closes In on Airbus A321 Jets During Max 10 Delays

KEY POINTS:

• United Airlines Holdings Inc. is in advanced talks to acquire additional Airbus SE A321neo aircraft as soon as next year, according to people familiar with the matter, allowing it to replace Boeing Co. 737 Max 10 orders that are at least five years behind schedule.
• The US carrier is negotiating with aircraft lessors and the European planemaker to access production slots, the people said, asking not to be named with discussions still in flux. Some of the targeted slots have been freed up after JetBlue Airways Corp. and Spirit Airlines Inc. postponed A320-series deliveries, the people said, cautioning that details aren’t final and could change.
• Securing extra Airbus planes would help United lessen the impact of delays at Boeing that have jeopardized the airline’s growth plans. The Max 10 won’t make its market debut until 2025, at the earliest, and is at risk of further delays since a fuselage panel blowout on Jan. 5 intensified regulatory scrutiny on Boeing. The uncertainty over the final and largest 737 model has frustrated customers including United Chief Executive Officer Scott Kirby, who has 277 of the aircraft on order with options for 200 more.

Bloomberg

Delta Orders Up To 40 Airbus A350-1000 Widebody Planes

KEY POINTS:

• Delta Air Lines (DAL.N), opens new tab on Friday unveiled an order for up to 40 new Airbus (AIR.PA), opens new tab A350-1000 widebody aircraft, with deliveries of the first 20 jets are scheduled to begin in 2026.
• The order, which Reuters this week reported was imminent, is likely to make Delta the first U.S. carrier to operate the model. Delta said it had options for a further 20 planes.
• The long-range A350-1000 can comfortably accommodate 350 to 410 passengers and has a large amount of space for premium cabins, according to the European planemaker.
• Delta's CEO Ed Bastian said the planes will replace Boeing (BA.N), opens new tab 767s.
  "These planes complement our fleet strategy and will offer a world-class customer experience for international travelers with more premium seats, higher gauge and great customer amenities," he said on the company's earnings call.
• Delta has positioned itself as a premium airline and seeks to attract travelers willing to pay for something other than just a seat. Its revenue from premium cabins has been outpacing those from low-cost seats since the pandemic.

Reuters

SkyWest To Operate 20 Additional Embraer E175s For United Airlines

KEY POINTS:

• SkyWest Airlines will operate 20 more Embraer E175s for United Airlines, enhancing their partnership and meeting market demand.
• Operating over 800 United Express flights a day, SkyWest Airlines is the largest regional carrier in the US.
• SkyWest Airlines plans to grow its Embraer E175 fleet to 278 by 2026, showcasing its commitment to expanding services.

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