American Airlines has announced orders for 260 new aircraft, including both Boeing Airbus and Embraer regional jets.
It’s part of America’s strategy to increase revenues from first-class domestic and short-haul international seats.
“Over the past decade, we have invested heavily to modernize and simplify our fleet, which is the largest and youngest among U.S. network carriers,” said American’s CEO Robert Isom. “These orders will continue to fuel our fleet with newer, more efficient aircraft so we can continue to deliver the best network and record-setting operational reliability for our customers.”
A younger fleet will help American in reducing fuel costs and perhaps its customer service ratings which trail rivals like Delta.
At the same time, the Dallas-based carrier is not as profitable as its rivals, which fly older aircraft but do not carry American’s debt load.
Interestingly enough, arch-rival Delta owns a refinery near the Philadelphia International Airport that helps it rein in fuel costs.
In investor updates, Amerian executives say the carrier will stay within guidance for capacity and capital expenditures.
America will also also offer basic economy, which charges extra for seat assignments and checks luggage.
It also operates smaller regional jets that serve smaller cities, often with hefty fares. One of its small jet subsidiaries, Piedmont, is based near the Delaware line in Salisbury, MD.
Frontier offers a few rows with no middle seat
We’ve noted in this space that Frontier Airlines is targeting high-fare markets dominated by American and other major carriers. Examples include Pittsburgh and Charlotte, NC.
One of the weapons the ultra-low fare carrier will employ is Upfront Plus. In exchange for paying $49 or more one-way, passengers will get a seat at the front of the jet, with no one in the middle seat.
Frontier is hoping that leisure and business travelers might pay extra for the added room.
Avelo Airlines also offers seats with extra legroom at an added cost.
Avelo adds fuel-saving Finlets
Avelo Airlines will pioneer the use of Finlets on its larger Boeing 737 800 jets.
Avelo partnered with Seattle-based Vortex Control Technologies to install the Finlets.
Avelo, which offers flights from Wilmington (ILG) is the first airline in the world to install the Finlets on 737-800 aircraft and the second airline in the world to utilize the Finlets on any aircraft.
VCT Finlets will reduce Avelo’s total fuel consumption and carbon emissions by a modest 1.4%. However, once Avelo’s entire fleet is fitted with Finlets, the airline estimates an annual reduction of 11 million pounds of carbon emissions and 560,000 gallons of fuel. Jet fuel is expensive, and the savings could amount to $3 million or more a year.
Avelo operates older jets that are less fuel-efficient than new aircraft. At the same time, leasing costs for older jets are lower, and Avelo can increase cost savings with Finlets.
