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United Airlines Places Order For 270 Planes Worth Over $30billion
United Airlines unveiled its largest-ever order for Boeing and Airbus jets on Tuesday, lining up 270 planes in a push for post-pandemic growth with bigger jets for domestic flying.
According to Reuters, 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 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, an 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 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.