American Airlines (AAL.US) announced today that it has ordered 260 new aircraft from Boeing (BA.US), Airbus (AIR.DE) and Embraer (ERJ.US). The order includes 85 A321Neo aircraft from Airbus, 85 737 MAX 10 jets from Boeing, as well as 90 E175 aircraft from Embraer. Moreover, the orders include options and purchase rights for additional 193 aircraft. Embraer said that the order is for up to 133 jets, meaning that 43 out of additional 193 aircraft could come from this manufacturer. No financial details or timing of deliveries was disclosed apart from American Airlines CEO, Robert Isom, saying that he is confident Boeing will deliver its planes by 2028.
While the order is massive, American Airlines said that it expects to remain within its previously announced capital expenditure guidance of less than $3.5 billion a year from 2025 through 2030. However, investors seem to have second thoughts about it as company's stock tanked following the announcement. On the other hand, shares of involved aircraft manufacturers gained on the news, with Embraer jumping 2.5% and reaching the highest level since late-January 2019.
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American Airlines (AAL.US) erased daily gain and turned lower after announcing large aircraft order. Stock swung from a 3% gain to a 4% loss in a massive reversal. Should decline deepen, the next support zone to watch can be found in the $14.50 area, where previous price reactions as well as 50- and 200-session moving average can be found. Source: xStation5
Embraer (ERJ.US) caught a bid following American Airlines order announcement and jumped to the highest level since late-January 2019 (W1 interval). Source: xStation5
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