American Airlines shares open higher; airline order 30 new jets

American Airlines shares opened higher Thursday as the airline has ordered 30 new mid-sized jets in an order split between Embraer and Bombardier.

American Airlines shares open higher; airline order 30 new jets

American Airlines shares opened in the green Thursday amid news the airline has ordered 30 new mid-size jets. American Airlines has split its order between two plane manufacturers, Embraer and Bombardier.

That decisions suggests the airline is keen to take delivery of all 30 jets sooner rather than later.

By 1440 BST, American Airline shares were 0.50% higher at $42.45. Embraer shares and Bombardier shares, meanwhile, were a little lower.

American Airlines jet orders

Earlier Thursday, both Embraer and Bombardier confirmed the news with press releases on their sites.

The US airline has ordered 15 E175 jets from Brazilian plane maker Embraer, at a combined list price of $705 million. And, that latest order brings the total number of E175 jets American airlines has ordered from Embraer, to 89.

“We are thrilled that the E175 continues to be the right solution for American, Vice President of sales & marketing in north America for Embraer, Charlie Hillis said.

“This is American’s fourth order for the E175 since 2013 and their repeat order demonstrates how well the aircraft serves their business needs and the confidence they have in our platform,” Hillis added.

Separately, Bombardier announced a similar deal between themselves and American Airlines. The US airline has ordered 15 CRH900 aircrafts, for a deal total – based on list prices – of $719 million.

“We are pleased with American’s continued confidence in Bombardier and the CRJ900 aircraft,” said Fred Cromer, President, Bombardier Commercial Aircraft.

“This order is a testament to the tremendous value that the CRJ Series provides to airlines in the North American regional market,” Cromer said.

Short-range jet investment

American Airline’s $1.4 billion investment in newer, mid-size short-range jets suggests its continuing to increase its offerings of dual-class transport across the US.

Indeed, the deals announced Thursday, which also include the option for an additional 15 jets from each plane maker, follow the purchase of some 200 similar sized jets in the past four years as the airline continues to roll out the double travel class options to its customers.

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