American Airlines is ordering 30 new 737 Max 8 jets from Boeing, betting big on a domestic travel recovery with the controversial plane that was grounded in 2019.
American Airlines announced the orders for the 172-seat aircraft Wednesday and also said it was pushing back the delivery of an undisclosed number of Boeing 787-9 jets that have been delayed because of production issues at Boeing. American has already blamed Boeing’s 787 Dreamliner delays for cutting international routes next summer.
American Airlines has orders for 57 of the 737 Max jets through 2025, making a commitment to the plane that the airline’s leaders have bragged about in terms of fuel efficiency and cost savings but that was also grounded for nearly two years after two deadly crashes blamed on faulty anti-stall software.
American is scheduled to get 15 of the jets in 2023 and the other 15 in 2024, according to regulatory filings. The deal includes 23 new purchase commitments from American and the exercise of options on seven planes.
That should coincide with projections for a full recovery from the COVID-19 pandemic in terms of passenger counts, a recovery that has included a strong rebound in leisure travelers flying within the U.S. where the 737 Max jets are used most.
American Airlines already has 45 of the 737 Max 8 jets in its fleet. The planes get 15% to 20% better fuel efficiency than the previous generation of 737 jets from Boeing and are much quieter.
This new order is the first aircraft commitment for the carrier since it ordered 50 Airbus A321 jets in 2019.
American announced the deals for the 737 Max jets at the same time it cited delivery delays on the 787 Dreamliner planes, although it’s unclear whether Boeing gave American a deal on the Max jets in exchange for agreeing to delays.
American Airlines’ leaders said last month that Boeing is paying penalties for delays on 19 of the twin-aisle 787 jets that were supposed to be delivered in 2021. American depends on the planes, which carry 234 to 285 passengers, for long-haul flying to South America, Europe and Asia along with cross-country domestic routes.
“We anticipate that with the 787, we will be a materially smaller international airline that what we would otherwise like to be,’ American Airlines chief revenue officer Vasu Raja said in January during the company’s fourth-quarter earnings call.
