American Airlines Seeks Widebody Order to Take On Delta and United

Key Points

• American Airlines is evaluating new widebody aircraft orders from Boeing and Airbus to better compete with Delta and United.
• American's decision to retire much of its widebody fleet during the pandemic has left it trailing its rivals in international capacity.
• Labor union pressures and high fuel prices have contributed to sluggish profits for American, prompting strategic reassessment.

Summary

American Airlines is considering a major order of widebody aircraft from Boeing or Airbus as it seeks to improve its profitability and catch up with competitors Delta and United, both of which have already placed significant widebody orders. The airline's earlier decision to retire a large portion of its widebody fleet during the pandemic has hindered its ability to meet rising international demand. Coupled with high fuel prices and labor union dissatisfaction, American faces ongoing financial and strategic challenges.