Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

United Airlines unveils huge jet order in push for growth

Stock MarketsJun 30, 2021 04:21AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A United Airlines passenger jet takes off with New York City as a backdrop, at Newark Liberty International Airport, New Jersey, U.S. December 6, 2019. REUTERS/Chris Helgren

By Tracy Rucinski and Eric M. Johnson

(Reuters) -United Airlines unveiled its largest-ever order for Boeing (NYSE:BA) and Airbus jets on Tuesday, lining up 270 planes in a push for post-pandemic growth with bigger jets for domestic flying.

The Boeing-dominated order for 200 Boeing 737 MAX and 70 Airbus A321neo jets, worth over $30 billion at list prices, will boost United's domestic capacity by almost 30%, allowing it to better compete for both premium and low-cost travel.

It builds momentum for planemakers seeking to turn the page on the COVID-19 travel slump, at least in the United States, and signals a strong bet on a recovery in business travel.

Chief Executive Scott Kirby (NYSE:KEX) said it would "accelerate our business to meet a resurgence in air travel."

America's third-largest airline by revenue will replace most of its regional jets and undertake a sweeping cabin overhaul with more premium seats.

"With a number of startups commencing operations or with plans to, United is putting the U.S. travel industry on notice," said Peter McNally, analyst at research firm Third Bridge.

The order, confirming a detailed breakdown reported by Reuters on Monday, includes 50 Boeing 737 MAX 8 and 150 MAX 10, accelerating a recovery in the wake of a two-year MAX safety crisis in what market sources called a partial coup for Boeing.

It especially marks a breakthrough for the 230-seat MAX 10, the largest variant which has begun flight tests but until now has struggled to contain runaway sales of the competing A321neo.

But Boeing's victory over Airbus in the number of units sold was tempered by Europe's continued grip on a strategically vital segment for single-aisle missions that need the most range.

That allowed Airbus to secure a quarter of the deal in a high-margin niche where Boeing faces a gap in its portfolio, forcing it to ponder a new jet to replace the longer-range 757.

Boeing appears to be calculating that the United deal will demonstrate that the MAX 10 fits the bill for some three-quarters of missions while it weighs options for a larger new model, analysts said, amid thin post-pandemic demand.

Airbus, meanwhile, continues to pitch the A321neo as a "premium" product.


"This is a great time to acquire capacity cheaply - the aircraft market remains depressed - and this will offer lasting structural cost improvement," said Carlos Ozores, vice-president at aviation consultancy ICF.

After initial gains, Boeing shares ended down 1.8%, resuming losses triggered by delays in certifying the larger 777X. United and Airbus both eased 0.6%.

Combined with existing orders, United will receive 500 new narrowbody aircraft including 40 in 2022 and 138 in 2023. It said it has flexibility on deliveries between 2024 and 2026 and the option to convert some MAX 10 orders to other variants.

United, which unlike major rivals did not retire jets during the pandemic, said it plans to fly the first MAX 8 with the new interior this summer and the MAX 10 and A321neo in early 2023.

The order includes 25 737 MAX "white tails" - jets canceled by other buyers during a 22-month grounding.

The airline, which received $10.5 billion in government aid during the pandemic, devoted a large part of its release to a pledge to create 25,000 unionized jobs through the purchase.

United said it expected to earn a pretax profit in July, its first since January 2020.

Boeing, required to add MAX simulator training for pilots of earlier 737 models after software problems contributed to fatal MAX crashes, said the United deal includes simulator data.

Airbus said a significant number of newly ordered A321neos would be assembled at its plant in Alabama.

United Airlines unveils huge jet order in push for growth

Related Articles

ICUI Medical: Recovering Well, Post-Pandemic
ICUI Medical: Recovering Well, Post-Pandemic By TipRanks - Sep 26, 2021

ICU Medical (NASDAQ:ICUI) is one of the notable post-pandemic recovery plays that investors have been curious about of late. It is a major medical devices manufacturer that can...

Two Tales of Inflation
Two Tales of Inflation By TipRanks - Sep 26, 2021

Inflation, the old villain of the American economy, is back, raising a great deal of anxiety on Main Street and Wall Street. In the last twelve months, interest in U.S. inflation...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Silence Dogood
Silence Dogood Jun 29, 2021 5:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email