American Orders 460 New Planes From Boeing, Airbus

By: AP Email
By: AP Email

FORT WORTH, Texas (AP) - American Airlines is buying at least 460 new planes over the next five years and splitting the order between Boeing and Airbus.

American said Wednesday it will buy 260 planes from Airbus and 200 from Boeing Co. It's a major coup for Europe's Airbus because American currently flies an all-Boeing fleet.

American will also take options and purchase rights for up to 465 additional planes through 2025.

The airline expects the new, better-mileage planes will save money on fuel and provide more enticing amenities to passengers.

American parent AMR Corp. also announced that it plans to spin off its American Eagle regional-flying subsidiary as a separate company.

The twin announcements overshadowed AMR's news that it lost $286 million in the second quarter, as rising fuel prices wiped out gains in revenue.

The loss equaled 85 cents per share. Revenue rose to $6.11 billion from $5.67 billion a year ago.

Analysts surveyed by FactSet were expecting a loss of 77 cents per share on revenue of $6.17 billion.

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