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American Airlines orders 60 Embraer jets worth $2.5 billion

12/12/2013 | Reuters

American Airlines orders 60 Embraer jets worth $2.5 billion
© Embraer
American Airlines Group Inc (AAL.O) agreed to buy 60 aircraft from Embraer SA (EMBR3.SA), the world's largest producer of regional jets, in a deal worth $2.5 billion at list prices, sending Embraer shares to a two-month high on Thursday.

Delivery of the new E175 airplanes will begin in the first quarter of 2015, Embraer said, bolstering its order backlog as it finished off a strong year.

The Brazilian planemaker secured more than 300 firm orders for its regional E-Jets this year as it launched a re-engined lineup due in 2018, and won most of the short-term orders from U.S. carriers renewing their fleets.

Embraer shares jumped 4.3 percent in Sao Paulo trading after hitting its highest since mid-October.

American also ordered 30 Bombardier Inc (BBDb.TO) CRJ900 jets, the Canadian planemaker said on Thursday. It was the Canadian rival's biggest deal with a major airline since a Delta Air Lines Inc (DAL.N) order a year ago.

Embraer's next-generation investments and aggressive sales efforts have helped it dominate the market this year for regional jets seating about 75 passengers, while Bombardier has bet the future of its civil aviation unit on the larger CSeries.

(Reporting by Brad Haynes; Editing by Lisa Von Ahn)

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