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Aug. 16, 2022, 9:43 a.m. EDT

American Buys Planes from Boom

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Aug 16, 2022 (Baystreet.ca via COMTEX) -- American Airlines /zigman2/quotes/209207041/composite AAL -0.07% has agreed to purchase 20 supersonic Overture planes from Boom Supersonic, the companies announced Tuesday.

The deal is the second firm order in the last two years for Boom, still years from building its first commercial airplane. United Airlines /zigman2/quotes/205037281/composite UAL 0.00% made a commitment last year to buy 15 Overture jets.

"Passengers want flights that are faster, more convenient, more sustainable and that's what Overture delivers," Boom CEO Blake Scholl said.

"Flight times can be as little as half as what we have today, and that works great in networks like American where we can fly Miami to London in less than five hours."

Boom says the Overture jet will fly as fast as Mach 1.7, or 1,304 mph, dramatically cutting trans-Atlantic and trans-Pacific flight times. For example, a flight from Seattle to Tokyo, which typically takes just over 10 hours, could be completed in six hours in an Overture, according to Boom.

"Supersonic travel will be an important part of our ability to deliver for our customers," American's chief financial officer, Derek Kerr, said in a statement announcing the order. American is paying Boom an undisclosed amount as a nonrefundable deposit.

The airline also has the option to purchase another 40 Overtures in the future.

AAL shares taxied 11 cents to $15.22

COMTEX_412386599/2559/2022-08-16T09:42:54

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 13.97
-0.01 -0.07%
Volume: 24.12M
Dec. 2, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$9.08 billion
Rev. per Employee
$366,370
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/zigman2/quotes/205037281/composite
US : U.S.: Nasdaq
$ 43.89
0.00 0.00%
Volume: 4.53M
Dec. 2, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$14.35 billion
Rev. per Employee
$484,507
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