American Airlines Closes $7 Billion Embraer Jet Order

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

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

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.

“Over the past decade, we have invested heavily to modernize and simplify our fleet, which is the largest and youngest among U.S. network carriers,” said American Airlines Group CEO Robert Isom. “These orders will continue to fuel our fleet with newer, more efficient aircraft so we can continue to deliver the best network and record-setting operational reliability for our customers.”

American said its strategy includes transitioning its fleet of regional aircraft to larger, dual-class models in place of its older 50-seat, single-class aircraft, which the company expects to retire by the end of the decade. The airline said it will continue to serve small and medium-size markets with larger regional jets.

“The E175 is truly the backbone of the U.S. aviation network, connecting all corners of the country,” said Arjan Meijer, president and CEO of Embraer Commercial Aviation. “One of the world’s most successful aircraft programs, the E175 was upgraded with a series of modifications that improved fuel burn by 6.5 percent. This modern, comfortable, reliable, and efficient aircraft continues to deliver the connectivity the U.S. depends on day after day."

Jonathan Welsh is a private pilot who worked as a reporter, editor and columnist with the Wall Street Journal for 21 years, mostly covering the auto industry. His passion for aviation began in childhood with balsa-wood gliders his aunt would buy for him at the corner store. Follow Jonathan on Twitter @JonathanWelsh4

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