Please ensure Javascript is enabled for purposes of website accessibility

American Defers 37 Boeing Jets as Post-Pandemic Recovery Continues

By Lou Whiteman - Apr 13, 2021 at 4:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The airline won't need as many 737s and Dreamliners in the next few years.

American Airlines Group (AAL 0.07%) has worked out a revised delivery schedule with Boeing (BA -1.01%), deferring 37 jets as it seeks to ride out a drop in travel demand due to the pandemic.

American in a regulatory filing said that eighteen 737 MAX jets originally expected to be delivered this year and in 2022 will instead arrive in 2023 and 2024. It is also pushing back delivery on a number of 787 Dreamliners. Fourteen 787-8 airplanes expected to be added to the fleet this year will instead arrive by the end of the first quarter of 2022, and an additional five aircraft will be converted to a different version of the 787 for delivery in 2023.

An American 737 sits on the tarmac.

Image source: American Airlines.

American and other airlines are rethinking their fleet needs after a miserable 2020 in which the industry saw travel demand dry up due to COVID-19. Travel has slowly come back in recent months as the vaccine rollout has progressed, but American in the filing said it still expects to report a substantial loss in the recently completed first quarter.

International travel, which is the primary use of the 787 Dreamliner, is expected to take significantly longer to recover than domestic. And American and other airlines loaded up with additional debt last year to survive the crisis, making carriers ill prepared to take on a large number of new jets right now.

The news comes on the same day that Boeing said it delivered nineteen 737 MAX planes in March, including eleven to U.S. carriers. Boeing also met its goal to resume deliveries of the Dreamliner before quarter's edge, delivering two of the planes after a temporary suspension to work through some potential issues with its carbon fiber frame.

Boeing also reported 29 net commercial orders for the month, all for 737 MAX planes. Airbus (EADSY 1.20%), by comparison, delivered 60 planes in March but only had 20 net orders for the month.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

American Airlines Group Inc. Stock Quote
American Airlines Group Inc.
$13.89 (0.07%) $0.01
The Boeing Company Stock Quote
The Boeing Company
$136.31 (-1.01%) $-1.39
Airbus Stock Quote
$23.63 (1.20%) $0.28

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.