American Airlines and Boeing have agreed to defer the purchase and delivery of new aircraft. The arrangement implies American will presently defer delivery of 19 787 Dreamliners and 18 737 MAX planes, as the aircraft is set to report planes for the first quarter of 2021.
American and Boeing agree to defer deliveries
American Airlines has agreed to defer the delivery of billions of dollars worth of Boeing planes. The two organizations have agreed to defer the delivery of 19 787 Dreamliners and 18 737 MAX jets. The airline uncovered the deal in a securities filing this week, which likewise hinted at first-quarter 2021 of up to $1.3 billion.
The 18 deferred 737 MAX jets were at initially scheduled for delivery in 2021 and 2022. With the most recent agreement, the MAXs will presently be delivered through 2023 and 2024. American and Boeing had previously agreed on deferral rights for the 18 MAXs in October prior to making it official this week. The 18 MAX jets are part of a larger order of 76 MAXs, which are all still on order.
American has likewise altered its order book for the 787 Dreamliner. Of the 19 Dreamliners influenced, the airline has converted five orders for the 787-8 model to the bigger 787-9. These jets will presently be delivered from 2023 onwards. 14 orders for the 787-8 have likewise been deferred, with delivery rescheduled to the first quarter of 2022.
Boeing has purportedly refunded $248 million in pre-delivery deposits to American as a component of the agreement. The aggregate was paid out for outstanding loans as part of the airline’s deal for the 18 MAX jets. The MAXs won’t be normal at American until 2023 at the earliest.
First-quarter losses in the billions
American is set to report overall deficits of up to $1.3 billion for the first quarter of 2021. The carrier’s incomes are somewhere near 62% contrasted and the principal quarter of 2019. American’s large operating losses, coupled with an absence of passenger demand, assumed a significant role in its decision to defer the 37 Boeing jet deliveries. As indicated by American Airlines representative Matt Miller, the aircraft “is making the move because of a lack of demand.”
Nonetheless, the airline turned a positive adjusted cash flow in March and as of late updated its first-quarter guidance to a more optimistic outlook. The organization declared it was consuming around $4 million every day all through March, down from $30 million every day for the past quarter. Its quarterly overall deficits, set to remain at around $1.3 billion, would have been at $2.8 billion without the monetary help of the U.S payroll support program.
In other good news, American Airlines repaid $2.8 billion worth of credit earlier this month. Before the finish of 2020, American had accumulated debts of $41 billion, a 23% expansion because of the effect of the pandemic. As indicated by its latest filing, the airline expects to have $17.3 billion available in liquidity by the end of the quarter.American Airlines and Boeing, 737 MAX and 787 agrees to delay the purchase and delivery