United Airlines Adjusts Fleet Strategy Amid Boeing 737-10 Delays, Eyes Airbus A321 and 737-9

Facing delays with the Boeing 737-10, United Airlines plans to increase its reliance on the Boeing 737-9 and Airbus A321 models to maintain growth momentum, announced CFO Mike Leskinen. This strategic pivot comes as the airline navigates certification challenges heightened by a recent incident involving an Alaska Airlines 737-9, casting further uncertainty on the already postponed 737-10 model.

United, having placed orders for 277 units of the 737-10 with an option for an additional 200, remains committed to its fleet expansion despite omitting the model from its immediate operational planning.

This adjustment poses potential constraints on United’s ambitious “United Next” initiative, which aims to bolster domestic capacity by nearly 30% by 2026. Speaking at Citi’s industrial conference, Leskinen highlighted the critical role the 737-10 was to play in this expansion, indicating a shift towards a blend of MAX 9 and A321 aircraft to compensate for the shortfall. The exact composition of this mix remains undecided, hinging on future pricing dynamics.

Reports last month suggested United’s proactive engagement with Airbus to explore augmenting its A321neo fleet as a contingency for the MAX 10 order. Leskinen expressed significant disappointment with Boeing over the delivery delays, suggesting United’s openness to integrating more Airbus models into its predominantly Boeing fleet and considering extending the service life of older aircraft nearing retirement.

Sources: AirGuide Business airguide.info, bing.com, reuters.com