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!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
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.