American Airlines orders four E175 jets from Brazilian plane manufacturer Embraer
Brazilian airplane maker Embraer recently revealed that American Airlines has made a solid commitment to buy four E175 jets. These planes will be used by Envoy Air, which is a part of American Airlines and operates smaller regional flights. The price of this order is around $230.6 million. The delivery of these planes is expected in the last part of 2024.
This order will help boost Envoy Air's fleet, making it bigger with over 150 planes by the end of next year. This follows another order for seven E175 planes that American Airlines made back in June.
American Airlines Reports Loss Due to Higher Fuel Prices
In other developments, American Airlines experienced financial difficulties in the third quarter, causing the business to decrease its annual profit forecast. The main cause for this is the growing cost of fuel.
The airline now expects to earn $2.25 to $2.50 a share for the whole year, down from $3 to $3.75 in July. This revised estimate, on the other hand, matches what experts projected. They also forecast a lower operational profit margin this year, down from 10% before.
American Airlines expects to make or lose money in the fourth quarter of this year.
Here's how American Airlines performed in the third quarter compared to what experts expected:
- Earnings per share: 38 cents (average: 25 cents).
- Sales were predicted to be $13.52 billion, but were actually $13.48 billion.
Despite the fact that the epidemic has caused more individuals to travel, airfares are lower this year than last. American Airlines expects a 5.5% to 7.5% decrease in revenue per flight unit in the fourth quarter of this year compared to the previous year. The price of each unit, excluding fuel, is predicted to rise by 5% to 7% by 2022,
