IsraelAir to buy American Airlines

American Airlines has bought Israeli Airlines.

The deal is expected to close by the end of the year.

American said the airline plans to invest $2.6 billion in its existing operations and add 700 jobs.

American announced the deal with IsraelAir on Thursday, adding that the airline will provide a fleet of 737-700 aircraft to the Israeli airline, as well as the next generation of jets, including the 737 MAX.

The airline also said it plans to begin operating flights from Los Angeles to Tel Aviv by 2022.

The company said it expects to add at least another 1,000 jobs to its existing workforce.

The sale is expected pay off for American Airlines, which has seen its stock drop nearly 5 percent since it announced the acquisition last year.

“American Airlines will provide American customers with a new, exciting and efficient airline,” CEO Ed Bastian said in a statement.

“This acquisition brings together two of the world’s leading commercial airlines, and it will strengthen the alliance between American and Israel.”

American Airlines shares rose 2.6 percent to $37.35.

The shares were up more than 14 percent since the announcement last year and have gained more than 40 percent this year.

IsraelAir has lost nearly 2,000 full-time jobs since it was founded in the early 1990s.