NEW YORK (TheStreet) -- American Airlines (AAL) shares are down 0.37% to $40.56 in afternoon trading after the airline said that it was delaying the delivery of an order for 35 new Airbus Group (EADSY) A320neo jetliners.
The company now says that it will wait four to five more years before accepting the delivery of the new fleet, a delay from its previously announced delivery dates in 2017 and 2018.
The company now has no A320neo purchase commitments in 2017 and 2018, and instead has commitments for 25 A320's in 2019 and 75 in 2020 or later, according to an SEC filing.
The company said that the new delivery agreement gives it "more capacity flexibility."
American Airlines originally purchased 260 A320 family airliners in 2011. The company still has scheduled deliveries for 45 total Airbus A320 Family aircrafts for 2016 and 2017.
TheStreet Ratings team rates AMERICAN AIRLINES GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN AIRLINES GROUP INC (AAL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself."