American Buys Boeing 737s Worth $1.9 Billion

American Airlines said on Thursday it finalized a deal to buy 26 Boeing 737s, worth about $1.9 billion at list prices, as the carrier looks to update its fleet of older planes. American exercised purchase options on 20 of the planes, and placed six new orders, in a move to speed up the replacement of its gas-guzzling, 1980s-era MD-80s.

The airline has now ordered 36 Boeing 737-800s this year and is accelerating deliveries of planes booked in prior years. American is Boeing’s biggest customer, ordering more than 1,000 planes from the company since 1958.

The new order is part of American’s plan, announced on Wednesday, to speed up its fleet replacement in the face of high fuel prices. American plans to take delivery of 76 737-800s during 2009 and 2010, up from its previous plan to take 70 over that period.

The airline is retiring at least 75 of its older planes, including about 40 of its old MD-80s. Boeing’s 737-800, the workhorse for many domestic and regional airlines, seats about 160 to 190 passengers. With a more advanced structure and better engines, the plane is up to 30 percent more fuel efficient than the MD-80.