American Airlines retires its last Airbus A330, goes all-Boeing for wide-body jets
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
The changes to American Airlines fleet continue as the coronavirus pandemic resets flying.
The Fort Worth, Texas-based carrier has retired its 15 Airbus A330-200s, officially making it an all-Boeing wide-body operator of 777s and 787s, American said Thursday. The A330s have been in long-term storage since May.
The move brings the number of jets retired by American to 114 during the pandemic. Gone are its Airbus A330s — both the -200s and -300s — Boeing 757s and 767s and Embraer E190s, as well as the Bombardier CRJ200s flown by its regional affiliates.
Want more airline-specific news? Sign up for TPG’s free new biweekly Aviation newsletter!
“We now only have for aircraft types in our mainline fleet,” said American chief financial officer Derek Kerr during a quarterly earnings call on Thursday. “The operating efficiencies on the crew, maintenance and schedule are permanent.”
Kerr added that the aircraft retirements “accelerated” the airline’s long-term fleet plans. American’s mainline operations now consist of Airbus A320 and Boeing 737 family narrow-bodies and 777 and 787 family wide-bodies.
In a report Thursday, Raymond James analyst Savanthi Syth estimated that American has removed roughly 10% of the seats it flew in 2019 with the A330 retirements. Delta Air Lines has removed roughly 22% of 2019 seats and United Airlines none having not officially retired any jets.
Related: American Airlines won’t fly an Airbus A330 again for at least two years
American is due to take delivery of around 39 new mainline jets in 2021 after reaching an agreement with Boeing to defer up to eight 737 MAX deliveries. The new planes include 16 A321neos, 10 737 MAX 8s and 13 787s. All of the new aircraft have financing commitments in place, Kerr said.
The fleet changes come as American posted a $2.4 billion net loss in the third quarter. The critical cash burn measure — or how much it loses on a daily basis — averaged $44 million a day during the three months ending in September.
The airline’s daily losses are far higher than those at its competitors. Southwest Airlines achieved a burn of just $16 million a day, Delta Air Lines $24 million and United Airlines $21 million in the third quarter. However, each airline calculates the burn rate differently making direct comparisons difficult.
American hopes to reduce daily cash burn to $25 million to $30 million in the fourth quarter that ends in December.
Related: Airlines expect a post-coronavirus boom in leisure travel, they just don’t know when
American Airlines 3Q20 results.
Revenues ⬇️ 73% to $3.17B
Costs ⬇️ 46% to $6.04B
Net loss of $2.4BCash burn averaged $44mn/day (!!). $AAL https://t.co/UjzoUrHasN
— Edward Russell (@ByERussell) October 22, 2020
Featured image by Nicolas Economou/NurPhoto via Getty Images.
Sign-up Successful!
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.