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United Airlines’ Boeing 767-400 ER Extended Range aircraft, powered by two CF6-80 engines, landed at… [+] The Netherlands’ Amsterdam Schiphol International Airport (AMS EHAM) is located in Amsterdam, the Dutch capital. The plane’s registration number is N66057, and it’s a Boeing 767-424(ER). UAL / UA is an American airline based in Chicago, Illinois that connects Amsterdam to Chicago O’Hare, Houston Intercontinental, Newark, Washington Dulles, and San Francisco on a seasonal basis. (Photo courtesy of NurPhoto/Nicholas Economou via Getty Images)
NurPhoto courtesy of Getty Images
United Airlines (NASDAQ: UAL) recently placed an order for 270 Boeing 737 Max and Airbus A320 aircraft to replace its ageing regional and mainline aircraft. The new fleet will be 11% more energy efficient, with a 15-20% reduction in carbon emissions per seat. Along with improved customer service and a more roomy cabin, the airline is expanding its network of destinations and aircraft options between U.S. cities. The passenger air travel market is likely to increase at a single-digit rate in the next twenty years, according to Boeing’s commercial market view, with new orders primarily driven by aircraft replacements. Apart from the previously stated goal of complete revenue and EBITDA recovery by 2023, United Airlines’ revenues are expected to expand rapidly after that due to the addition of new planes to the fleet. In an interactive dashboard study, we highlight the important divisions of United Airlines’ revenues. Margin expansion necessitates aircraft replacement.
United Airlines’ fleet consists of 812 mainline and 475 regional aircraft, according to yearly filings. The mainline consists mostly of 136 Boeing 737-900ER and 141 Boeing 737-800 planes. 190 Embraer and 133 CRJ 200 aircraft make up the regional fleet. The previously announced aircraft retirement program would mostly replace smaller mainline jets and 200 regional jets over the next few years. With 500 new jets on the order books, United’s fleet will be made up of 40% newer planes, resulting in significant fuel savings and margin improvement.

Trefis Revenue

Travel demand and a new retirement plan are expected to boost the top line.
United Airlines’ revenue grew by 14% from $38 billion in 2017 to $43 billion in 2019, thanks to increased capacity and ticket prices. As occupancy rates improve in the post-pandemic period, revenues are likely to continue to rise. Notably, passenger counts at TSA checkpoints have fallen nearly 20% below 2019 levels, owing to a rebound in travel and tourism. In addition, until September 2022, the third phase of payroll assistance requires airlines to postpone dividends and share repurchases, emphasizing the importance of robust cash generation to restore shareholder returns.
Do United Airlines’ competitors provide higher returns? The United Airlines Stock Comparison With Peers chart shows how UAL stacks up against its competitors on key parameters. Peer Comparisons has a lot more of these kinds of valuable comparisons.
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