BA Boeing Co

By Kimberly Chin

American Airlines Group Inc. raised its forecast for capital expenditure this year after amending deals with Boeing Co. to expand its 737 Max 8 orders and accelerate the timeline for 737-9 deliveries.

American on Wednesday disclosed in securities filings that it amended a February 2013 purchase agreement for firm orders of 737 Max 8 aircraft to 30. The previous agreement called for the purchase of 23 737 Max 8 aircraft by converting existing purchase options.

The company said it plans to convert options this year for the additional seven aircraft. Fifteen of the aircraft will be slated for delivery in 2023 with the rest scheduled for 2024.

The company said it has also moved the timeline for the delivery of previously deferred 787-9 aircraft orders to the fourth quarter of 2023 through 2027. Delivery was previously scheduled for the beginning of January 2023. The agreement now calls for four of the 787-9 aircraft to be delivered in 2023.

The airline said that it expects capital expenditures of about $2.67 billion this year, up from its prior forecast of $2.63 billion. For 2023, it expects capital expenditures about $2.86 billion, compared with its previous view of $2.71 billion.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

February 02, 2022 09:10 ET (14:10 GMT)

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