American Airlines won’t retire a single aircraft before 2030 & plans to add 50 more by year end
July 25, 2025
American Airlines is sticking to its long game on fleet strategy, eschewing retirements, accelerating deliveries, and reaffirming multibillion-dollar aircraft investment.
It plans to bolster its fleet by 50 aircraft before the end of 2025, and has allocated up to $3 billion in capital expenditure on aircraft for the remainder of the year.
An additional $1 billion of CapEx is earmarked for non-aircraft investments like cabin retrofits, lounge expansions, and digital upgrades. This comes even as investors recoil from a sharply downgraded earnings outlook.
No retirements and 50 new aircraft before the end of the year
American Airlines confirmed during its Q2 2025 earnings call that it does not anticipate any mandatory aircraft retirements until the end of the decade.
“We don’t have any aircraft retirements that are necessary between now and the end of the decade,” says Devon May, American’s CFO. “So for us, when we’re managing capacity, it’s really just being tight around utilisation during the off-peak periods.”
This approach allows the airline to maintain operational flexibility while avoiding the capital and scheduling disruptions often associated with retirements. American emphasised that any future capacity adjustments will be handled through scheduling and aircraft deployment, rather than by shrinking the fleet.
On the purchasing side, the airline has raised its 2025 delivery forecast to 50 aircraft, up from the previous range of 40–50. To support this, American has lifted its full-year aircraft CapEx guidance to $2.5–$3 billion, with total CapEx now projected at $3.5–$4 billion.
This includes both new and used aircraft, spare engines, and pre-delivery payments, all tied to existing orders rather than fresh commitments.
“We now expect to take delivery of 50 new aircraft this year at the high end of our previous range of 40 to 50 deliveries,” says May. “This is driven by earlier than planned deliveries of several aircraft that we now expect to receive in the fourth quarter, a few months earlier than our previous expectation of the first quarter of 2026.”
The airline also reiterated its plan to maintain moderate CapEx levels in the years ahead, averaging approximately $3.5 billion annually for aircraft through the rest of the decade.
Despite record revenues, American Airlines stock took a tumble
American Airlines delivered record revenue of $14.39 billion in Q2 2025 and posted adjusted earnings of $0.95 per share, beating analyst estimates. Performance was bolstered by strong international demand, particularly in the premium cabin, where Atlantic revenue per seat mile rose 5% year-on-year.
However, domestic revenue was down 6% as main cabin softness persisted. Costs remained elevated, with non-fuel unit costs rising 3.4% due to labour agreements and maintenance shifts. Despite the higher cost base, American generated $791 million in free cash flow and reduced net debt to $29 billion, its lowest level since 2015.
Yet investor sentiment turned sharply negative following management’s guidance downgrade. American now expects a Q3 loss of $0.10 to $0.60 per share and has revised its full-year forecast to between a $0.20 loss and an $0.80 profit, well below previous expectations.
The airline attributed the more cautious outlook to continued domestic demand pressure and uncertain macroeconomic conditions, despite improving trends later in the quarter.
While American reiterated its long-term focus on premium growth, loyalty expansion, and aircraft investments, the sharp revision in forward earnings dampened investor confidence, sending the stock down nearly 8% after the announcement.
