Alaska Airlines to Retire Airbus A321neo Fleet: Makes Way for Boeing's 737 MAX

Alaska Airlines will retire its 10 remaining Airbus A321neo aircraft on September 30 and will pay millions to exit lease contracts.

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The decision to retire the A321neo aircraft is due to delivery delays in 2024.

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Alaska Airline desires to operate a single fleet of Boeing 737 jets.

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The retirement of the Airbus fleet will significantly improve Alaska's per-seat economics and serve as a baseline for high-margin capacity growth.

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The A321neo aircraft have an average age of just five years and are likely to be quickly snatched up by other operators.

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The delay in A321neo deliveries could create an uptick in demand for spare A321neos, as airlines cope with potential scheduling disruptions.

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Alaska expects to train Airbus pilots on Boeing jets by the fourth quarter of 2023, which will set them up for a clean 2024 from a pilot training and dual fleet cost headwind standpoint.

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Getting out of lease contracts for parked planes is costly for airlines and Alaska expects to incur approximately $300 million to $350 million in special fleet transition charges through the end of the year.

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