NEW YORK (TheStreet) -- American Airlines is reportedly close to finalizing a $2.6 billion order for 200 CFM International engines for 100 Airbus A320neo jetliners. The deal would be a loss for United Technologies' Pratt & Whitney unit, which makes a competing turbofan engine also used on the A320neo.
(AAL) is said to be close to finalizing an order for 200 CFM International engines worth $2.6 billion, according to a report from Reuters.
Reuters cited sources who said American Airlines will buy 200 of CFM's LEAP engines for placement in 100 Airbus A320neo jetliners on order. The deal would be a loss for United Technologies' (UTX) Pratt & Whitney unit, which makes a competing turbofan engine also used on the A320neo.
As the 100 A320neos are part of American's larger order for 460 Airbus and Boeing planes, it could mean more orders for CFM engines in the future.
CFM is a joint venture between General Electric Aviation and Safran of France. Its LEAP-1A engine is expected to be up to 15% more fuel efficient than the CFM engine used on current A320s, according to Reuters.
At last check, shares of American Airlines Group were climbing almost 2% to $41.05, while shares of United Technologies were falling about 0.5% to $113.49.
In New York, I'm Brittany Umar reporting for TheStreet.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts