American Airlines' Airbus A321XLRs valued at $74 million
The value was revealed as part of its prospectus to investors as American Airlines looks to raise $1.1 billion.
American Airlines has revealed the estimated value of its two Airbus A321XLRs, as well as Boeing 737 MAX 8, 787-9, and Embraer E175 aircraft, as it looks to secure up to $1.1 billion of funds to pay for 25 aircraft that are scheduled for delivery between October 2025 and March 2026.
In filings on October 27, American Airlines detailed that it is looking to raise up to $1.1 billion through pass-through certificates, which are securities backed by loans on aircraft, enabling investors to receive periodic payments from the underlying loans, to fund 25 aircraft deliveries.
The 25 aircraft in question are split between two A321XLR, 12 737 MAX 8, three 787-9, and eight E175s, with deliveries scheduled for between October 2025 and March 2026. Some of the aircraft, like the A321XLR, registered as N303NY, have already been delivered to the airline, with the long-range narrowbody arriving at Dallas-Fort Worth International Airport (DFW) on October 22.
American Airlines previously said that the A321XLR would enter commercial service on December 18 from New York John F. Kennedy International Airport (JFK) to Los Angeles International Airport (LAX).
The airline’s A321XLRs were valued at an average of $74.1 million (N303NY) and $74.4 million (N305NY). It explained that the value was “the lesser of the average and median appraised values of each such aircraft as appraised by three independent appraisal and consulting firms.”
“Such appraisals indicate the appraised base value projected as of the currently scheduled delivery month and year for such aircraft at the time of the related appraisal.”
Meanwhile, the three firms valued the airline’s 737 MAX 8s between $55.9 million and $56.3 million, the 787-9s between $156.4 million and $156.8 million, and the E175s between $31.5 million and $31.7 million.
The total estimated value of all 25 is $1.5 billion, going down to as much as $990.2 million by November 11, 2037.
The initial amounts of the Class A and Class B pass-through certificates are $883.6 million and $220.9 million, with an estimated tenor of 12.5 years and 9.0 years, respectively. Investors who will subscribe to the certificates will get paid twice per year: on May 11 and November 11, up until late 2030s (Class A) or mid 2030s (Class B).
In its presentation to investors, in addition to its Q3 2025 financial results, which included a net loss of $114 million, American Airlines highlighted that its total available liquidity is $10.3 billion, while its total debt was $36.8 billion. Its target debt level by the end of 2027 is less than $35 billion.
Among its other highlights, it pointed out its unique network and fleet strength, saying that it has strong hubs at strategic locations, with eight of its hubs located in the largest 10 metropolitan areas in the United States.
The presentation also described the A321XLR as the aircraft that is “replacing the highly popular, long-lived 757s.” The aircraft of the type will open a “world of new opportunities” for American Airlines and its network, it said.
Rytis Beresnevicius
Comments ()