American Airlines (NASDAQ:AAL) has announced that it is currently in discussions with both Airbus (PA:AIR) and Boeing (NYSE:BA) regarding the potential purchase of a new narrowbody jet. This move comes amidst a surge in demand for aircraft as the travel industry experiences a notable boom.
According to a report from Bloomberg News, sources familiar with the matter revealed that American Airlines is considering ordering at least 100 jets from the two plane makers. In response to the news, American Airlines issued a statement confirming the ongoing talks, stating, “We are talking to Boeing and Airbus about our narrowbody aircraft needs for the latter half of this decade and beyond.”
However, both Airbus and Boeing have been tight-lipped about the discussions. When contacted by Reuters, Airbus declined to comment on “confidential commercial talks, which may or may not be happening.” Similarly, Boeing has not yet responded to media requests for comment.
Insiders from the industry shared that the negotiations are still in the early stages, and no firm decisions have been reached yet. American Airlines mentioned during an investor call last month that their fleet replacement needs are relatively limited due to the young age of their current aircraft. As a result, they estimate an average aircraft capital expenditure of approximately $3.5 billion per year for the next several years, possibly extending through the end of the decade.
The potential deal size is said to exceed 200 jets, with commitments for future purchases. As the negotiations have been underway for several months, the airline is reportedly considering Boeing’s 737 Max and Airbus’s A321neo as potential replacements for its 737-800, A319, and A320 single-aisle models later in the decade.
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Author Faith Yakubu 
