American Airlines nasdaq Aal Stock Tumbles Amid Record Aircraft Purchase

American Airlines (NASDAQ: AAL) Stock Tumbles Amid Record Aircraft Purchase

American Airlines Group (NASDAQ: AAL) stock plunged over 5% on Monday after the company placed its biggest plane order in more than a decade.

American Airlines (AAL) has announced a significant fleet expansion deal involving industry giants Boeing (NYSE: BA), Airbus, and Embraer (NYSE: ERJ). The airline has placed orders for 260 new aircraft, with a breakdown of 85 Airbus A321neo, 85 Boeing 737 MAX 10, and 90 Embraer E175 aircraft. These orders also include options and purchase rights for an additional 193 aircraft.

American Airlines has also chosen to convert 30 existing 737 MAX 8 orders to the larger 737 MAX 10 variant.

This strategic aircraft acquisition is part of American Airlines’ broader vision of expanding premium seating options across its narrowbody and regional fleets. The airline anticipates this move will strengthen its domestic and short-haul international network, setting it up for long-term success.

American Airlines 2024-2026 Forecasts

Apart from this, American Airlines has provided financial forecasts for the coming years. The company anticipates achieving an adjusted EBITDAR margin of about 14% in fiscal year 2024, followed by a range of 14% to 16% in fiscal year 2025 and further improvement of 15% to 18% in fiscal year 2026 and beyond.

The company has also outlined its expectations for free cash flow, estimating approximately $2 billion in fiscal year 2024, surpassing $2 billion in fiscal year 2025, and exceeding $3 billion in fiscal year 2026 and the years ahead.

American Airlines (NASDAQ: AAL) Stock Movement

AAL stock plummeted 5.43% to close at $14.81 on Monday. The traders had exchanged hands with 64,963,926 (64.96 million) shares compared to the average daily trading volume of 35.31 million.