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Aug. 16, 2022, 8:42 a.m. EDT

American Airlines to purchase 20 Boom Supersonic Overture aircraft with option for up to 40 more

American Airlines Group Inc. (NAS:AAL) said Tuesday it has agreed to purchase 20 Boom Supersonic Overture aircraft, with an option to purchase up to 40 more. The aircraft is expected to carry passengers at twice the speed of today's fastest commercial planes. Overture is designed to carry 65 to 80 passengers at Mach 1.7 over water, with a range of 4,250 nautical miles. The aircraft is also being designed to fly more than 600 routes around the world and will clock in at about half the time. "Flying from Miami to London in just under five hours and Los Angeles to Honolulu in three hours are among the many possibilities," the companies said in a joint statement. The Overture is expected to roll out in 2025 and carry its first passengers by 2029. Supersonic travel was largely put on hold with the retirement of the Concorde in 2003 by both British Airways and Air France, following an accident involving an Air France flight. American shares were slightly higher premarket, but have fallen 15% in the year to date, while the U.S. Global Jets ETF (PSE:JETS) has fallen 10%, matching the S&P 500's (S&P:SPX) decline.

Link to MarketWatch's Slice.