Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  American Airlines Group    AAL

AMERICAN AIRLINES GROUP

(AAL)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

American Airlines Picks Airbus Jets in Blow to Boeing -- 2nd Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/19/2019 | 04:29pm EDT

By Robert Wall and Andrew Tangel

LE BOURGET, France -- American Airlines Group Inc. agreed to buy 50 long-range, single-aisle jets from Airbus SE -- a big order for a new plane that leaves rival Boeing Co. behind in a new race to dominate a potentially promising market for midsize aircraft.

Airbus unveiled its new A321XLR, a fuel-efficient, narrow-body jetliner capable of flying between Europe and the middle of America, on Monday. It has racked up a series of big orders for the aircraft this week at the Paris Air Show here.

Boeing has plans for a similar plane, but has been distracted by the grounding of its 737 MAX, after two deadly crashes. This week, Boeing executives said the company hasn't yet decided whether it will go ahead with a competitor to the A321XLR.

American's large purchase stands as an early endorsement for the Airbus plane from an important customer.

It also carries some symbolism. When American in 2011 planned to buy Airbus's fuel-efficient A320neo, it caught Boeing executives by surprise and prompted an acceleration of the design of the 737 MAX, which was a hit with airlines until its grounding earlier this year. American, in 2011, split its 460 plane orders between the two manufacturers.

American was long seen as a prime potential customer for the Boeing aircraft that is still on the drawing board. Airbus's early success with the XLR could chip away at any future Boeing sales to American and other airlines. The XLR is also expected to enter into service at airlines at least two years earlier than the Boeing rival.

Boeing shares fell after the order announcement, closing off 1.4% at $368.63.

American President Robert Isom said the XLR "creates opportunities for us." The company says the plane could potentially fly passengers from East Coast cities to Europe. Trans-Atlantic routes are among the world's most lucrative.

Airlines, when sizing up new, long-haul routes, have increasingly embraced using smaller jets such as Airbus's A320 and Boeing's 737 to serve smaller cities that don't warrant a big jet. The most recent iterations of those smaller jets have both been updated with superefficient engines, while their small size gives airlines more flexibility to fly passengers to more cities "point to point," in industry jargon, or without a layover.

American will convert 30 existing orders for other Airbus single-aisle planes to the new XLR and buy 20 on top of that, the Toulouse, France, manufacturer said Wednesday. American's first XLR is due for delivery in 2023.

Airbus is designing the XLR in part to enable airlines to fly trans-Atlantic routes with a single-aisle plane, rather than with more costly wide-bodies. The jet will have a range of 4,700 nautical miles. Midsize planes generally seat between 230 and 270 passengers.

Boeing's answer to the XLR would replace its out-of-production, midsize 757, as well as larger 767s. American and other big U.S. carriers, including United Continental Holdings Inc., have large, aging fleets of these jets that will need to be replaced.

Boeing has said its XLR competitor plane would be ready by 2025, but analysts say its 737 MAX crisis could delay the time line.

Airbus on Wednesday also won deals from Qantas Airways Ltd. for 36 of the midsize planes and from airline investor Indigo Partners, which is buying 50 for use by budget carrier Frontier Airlines Inc., Europe's Wizz Air Holdings PLC and JetSmart in Chile.

British Airways parent International Consolidated Airlines Group SA this week ordered the plane for its Aer Lingus and Spanish unit Iberia to fly to the U.S.

The orders come as new entrants are pushing into the trans-Atlantic market with new planes. JetBlue Airways Corp. this year laid out plans to fly from the East Coast to London using single-aisle jets.

Frontier Airlines Chief Executive Barry Biffle said the U.S. discount airline would consider trans-Atlantic service with the jet. Frontier will get 18 of the XLRs, he said, but sees room for 100 to 150 in its long-term fleet plan.

--Doug Cameron contributed to this article.

Write to Robert Wall at robert.wall@wsj.com and Andrew Tangel at Andrew.Tangel@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
AIRBUS SE 0.64% 131.9 Real-time Quote.56.19%
AIRBUS SE 1.58% 131.4 End-of-day quote.56.90%
AIRBUS SE 0.00%End-of-day quote.0.00%
AMERICAN AIRLINES GROUP -1.17% 33.77 Delayed Quote.6.57%
BOEING COMPANY (THE) 0.54% 364.66 Delayed Quote.12.13%
BOEING COMPANY (THE) 0.11% 364.08002 Delayed Quote.3.18%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AMERICAN AIRLINES GROUP
09:05aTOP SCORE : American Airlines Named Best Place to Work for Disability Inclusion
PU
02:48aUnited Scales Back Plans to Add Flights -- WSJ
DJ
07/16United tops profit estimates as MAX woes prompt higher fares in robust travel..
RE
07/16Airlines count the cost of Boeing 737 MAX grounding
RE
07/15American Airlines Sees Continued Disruption and Costs Over 737 MAX Grounding
DJ
07/15AMERICAN AIRLINES : Report of unscheduled material events or corporate event
PU
07/15AMERICAN AIRLINES GROUP INC. : Regulation FD Disclosure (form 8-K)
AQ
07/15AMERICAN AIRLINES : and Cathay Dragon Launch Codeshare Agreement
AQ
07/15AMERICAN AIRLINES : Announces Webcast of Second Quarter 2019 Financial Results
AQ
07/15ADD A NAME TO A PLANE : American Airlines Aims to Raise Valuable Funding for Sta..
AQ
More news
Financials (USD)
Sales 2019 46 171 M
EBIT 2019 3 826 M
Net income 2019 2 225 M
Debt 2019 23 440 M
Yield 2019 1,21%
P/E ratio 2019 6,85x
P/E ratio 2020 5,77x
EV / Sales2019 0,84x
EV / Sales2020 0,76x
Capitalization 15 222 M
Chart AMERICAN AIRLINES GROUP
Duration : Period :
American Airlines Group Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AMERICAN AIRLINES GROUP
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 21
Average target price 41,11  $
Last Close Price 34,22  $
Spread / Highest target 60,7%
Spread / Average Target 20,1%
Spread / Lowest Target -24,0%
EPS Revisions
Managers
NameTitle
William Douglas Parker Chairman & Chief Executive Officer
Robert D. Isom President
Derek J. Kerr Chief Financial & Accounting Officer, Executive VP
Maya Leibman Chief Information Officer & Executive VP
Craig Barton Vice President-Technical Services
Sector and Competitors
1st jan.Capitalization (M$)
AMERICAN AIRLINES GROUP6.57%14 693
SOUTHWEST AIRLINES14.63%28 152
JUNEYAO AIRLINES CO LTD7.34%3 356
ALLEGIANT TRAVEL COMPANY48.22%2 325
SPICEJET LTD44.94%1 052
CONTROLADORA VUELA CO AVCN SA CV89.69%973