American Airlines Closes $7 Billion Embraer Jet Order

The airline is transitioning its regional fleet to larger jets with dual-class cabins.

Tuesday, March 12, 2024 at 02:28 PM ET

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American Airlines is gradually replacing its older 50-seat regional jets with Embraer E175s, which offer 76 seats in two classes [Courtesy: Embraer]

Key Takeaways:

Embraer has agreed to sell 90 E175 jets to American Airlines, with purchase rights for an additional 43, in a transaction valued at over $7 billion.
This acquisition supports American Airlines' strategy to modernize and simplify its regional fleet by replacing older 50-seat, single-class aircraft with larger, more efficient, dual-class E175 jets.
The E175, described as a popular and efficient regional aircraft, was upgraded to improve fuel burn by 6.5 percent and will be added to Embraer's Q1 2024 backlog.

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Embraer has agreed to sell 90 of its E175 jets to American Airlines Group Inc. with purchase rights for 43 additional jets in a transaction valued at more than $7 billion.

Under the companies’ agreement, Embraer will deliver the E175s with 76 seats in American’s standard two-class configuration. Embraer said the E175 is among the most popular regional aircraft, and the company has sold 837 of them since 2013. The latest firm order for 90 will be added to the Brazilian aerospace company’s first-quarter 2024 backlog and represents the airline’s largest single order of E175s.