American Airlines strikes huge deal to buy more Boeing 737 Max jets

The order includes 85 Boeing Max 10 aircraft, 85 A321neo planes from Airbus SE and 90 Embraer SA E175 regional jets, American said Monday in a statement. The carrier also has options to order 193 more planes. The aircraft will feed American’s plans to increase service in North America and to nearby international markets and increase the number of premium seats it offers.

It’s the first major deal for Boeing’s marquee 737 Max since the issue on an airborne Alaska Airlines jet earlier this year left the planemaker in crisis. Orders by blue-chip buyers like American often influence other customers. 

For American, the purchase is a bet that the yet-to-debut Max 10, the largest-ever 737 model, will clear final regulatory hurdles to beginning flights over the next two years. As part of the order, the carrier also changed 30 existing orders for Max 8 aircraft to the larger Max 10. Rival United Airlines Holdings Inc. has pulled the Max 10 from its near-term plans, citing uncertainty over when it will receive the plane.

American is confident that Boeing will be able to deliver a certified Max 10 by 2028, when the airline is supposed to begin receiving the planes, American Chief Executive Officer Robert Isom told CNBC in an interview.

With the agreements, American secures valuable production slots in a constrained market for new aircraft, with both planemakers largely sold out of single-aisle jets through the end of the decade. The order will allow American to replace some of its oldest fuel-guzzling single-aisle aircraft with more-efficient models with more premium seats.

“As we look into the next decade, American will have a steady stream of new aircraft alongside a balanced level of capital…