Fleet Analysis: American Airlines Narrow-Body Aircraft
American Airlines is currently in discussions with both Boeing and Airbus regarding its narrow-body aircraft requirements for the latter part of this decade and beyond. These discussions revolve around the objectives of replacing and upgrading its existing fleet while simultaneously expanding its network and overall capacity.
AA is contemplating the acquisition of 100 jets from Boeing’s 737 MAX series and Airbus’s A320neo series. Both of these options present notable advantages, including enhanced fuel efficiency, reduced maintenance costs, and superior passenger comfort compared to the older generation narrow-body aircraft. A thorough evaluation of its current fleet and existing order book suggests a leaning towards placing additional orders for A320neos, A321neos, as well as 737-8 and -9 aircraft.
With a fleet encompassing over 900 aircraft, American Airlines predominantly operates narrow-body planes sourced from the Airbus A320 family and the Boeing 737 family, constituting over 80% of its total fleet. This operational stance secures its status as the world’s largest operator within the A320 family aircraft category. Impressively, it also holds the title for the most extensive operator of A319 and A321 variants. In terms of the Boeing 737 family, it ranks as the fourth-largest operator while also holding the second-largest position within the 737-800 variant category.
The airline has projected aircraft capital expenditure (CapEx) to be approximately $1.7 billion in 2023 and expects aircraft CapEx beyond 2024 to average approximately $3.5 billion per year, likely through the end of the decade. The carrier has also taken advantage of low interest rates and favorable financing terms to secure its future deliveries.
American Airlines currently operates the following narrow-body aircraft types (August 2023):
- Airbus A319-100: 133 in service
- Airbus A320-200: 48 in service, average age of 22.3 years for the A319 and A320 fleet
- Airbus A321-200: 218 in service
- Airbus A321neo: 70 in service, average age of 2.2 years
- Airbus A321neoXLR: 58 on order
& - Boeing 737-800: 303 in service, average age of 13.7 years
- Boeing 737-8: 51 in service, average age of 3.8 years, 80 on order
The average age of American Airlines’ narrow-body aircraft fleet is slightly higher than the global average of 11.5 years, according to Statista. However, it is lower than some of its main competitors, such as Delta Air Lines (14.4 years) and United Airlines (15.7 years). American Airlines has been pursuing a fleet renewal strategy since 2014, which has accelerated during the pandemic, to replace and upgrade its older aircraft with newer and more fuel-efficient models.
The oldest narrow-body aircraft in American Airlines’ fleet are the Airbus A320-200s, which have an average age of 24.4 years. The oldest of these is N651AW, which was delivered in October 1997 and is currently stored. The newest narrow-body aircraft in American Airlines’ fleet are the Boeing 737-8s, which have an average age of 0.9 years. The newest of these is N323SG, which was delivered in December 2022 and is currently in service.
Sources: AirGuide Business airguide.info, msn.com, cnbc.com, aerotime.aero, aviationweek.com, planespotters.net, statista.com, thepointsguy.com