American Airlines to buy 260 new planes from Boeing, Airbus and Embraer to meet growing demand

American Airlines announced a massive order for new planes on Monday, splitting 260 new aircraft between Boeing, Airbus and Embraer in a move designed to meet growing travel demand and increase the airline’s supply of premium seats.

American said it placed options for up to 193 more planes over the next several years.

The airline and aircraft-makers did not disclose financial terms for the orders.

The package of orders includes 85 Boeing 737 Max 10s — a larger version of the Max that has not yet been certified by U.S. regulators. The plane is already years behind schedule, and United Airlines — which has 100 on order — is planning as if it will never receive the planes, according to its CEO.

Boeing is under intense scrutiny by the Federal Aviation Administration to fix problems in its manufacturing system, particularly since a panel blew off an Alaska Airlines Max 9 in midflight in January.


Federal safety officials say Boeing fails to meet quality-control standards in manufacturing

The Federal Aviation Administration said Monday its audit of manufacturing at airplane-maker Boeing and its key supplier turned up "multiple instances" of them failing to make sure manufacturing met quality standards.

American gave the U.S. plane-maker a vote of confidence, however, even converting a previous order for 30 Max 8s to the larger Max 10s.

It also ordered 85 A321neo planes from Airbus, Boeing’s European rival. The A321 and Max 10 are about the same size.

The Fort Worth, Texas-based airline also ordered 90 smaller E175 aircraft from Brazil’s Embraer.

The planes are all single-aisle, so-called narrow-body aircraft that American will use for flights within the United States and to nearby international destinations. In a presentation for analysts Monday, American called its short-haul network "the foundation of value for customers and investors."

American CEO Robert Isom said the airline has invested heavily in the last decade — more than 600 planes, including those used by its regional affiliates — to modernize and simplify its fleet, which is already the largest among U.S. carriers.

"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," Isom said in a statement.

The announcement means that American now has orders for 440 planes, some of which aren’t scheduled to be delivered until the next decade.

American made the announcement, which had been widely expected, a few hours before an investor day meeting with Wall Street analysts in New York.