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updated: 7/20/2011 7:25 AM

American orders 460 new planes from Boeing, Airbus

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Associated Press

FORT WORTH, Texas -- American Airlines is buying at least 460 new planes over the next five years and splitting the order between Chicago-based Boeing and Airbus.

American said Wednesday it will buy 260 planes from Airbus and 200 from Boeing Co. It's a major coup for Europe's Airbus because American currently flies an all-Boeing fleet.

American will also take options and purchase rights for up to 465 additional planes through 2025.

The airline expects the new, better-mileage planes will save money on fuel and provide more enticing amenities to passengers.

American parent AMR Corp. also announced that it plans to spin off its American Eagle regional-flying subsidiary as a separate company.

The twin announcements overshadowed AMR's news that it lost $286 million in the second quarter, as rising fuel prices wiped out gains in revenue. The loss equaled 85 cents per share. Revenue rose to $6.11 billion from $5.67 billion a year ago. Analysts surveyed by FactSet were expecting a loss of 77 cents per share on revenue of $6.17 billion.