United Airlines (NASDAQ: UAL) announced the purchase of 270 new Boeing (NYSE: BA) and Airbus (OTC: EADSY) aircraft, which the Chicago-headquartered carrier said was both the largest combined order in its history and the largest by a single carrier in a decade.
What Happened: United’s new aircraft order consists of 50 737 MAX 8s, 150 737 MAX 10s and 70 Airbus A321neos. The airline expects the first 737 MAX 8 to be flying this summer while the 737 MAX 10 and the A321neo should be in the air by early 2023.
With the new purchase, United expects to have more than 500 new narrow-body aircraft in its fleet, with 40 in 2022, 138 in 2023 and up to 350 in 2024 and beyond.
The new aircraft will replace older, smaller mainline jets and at least 200 single-class regional jets with larger aircraft, the company added.
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Why It Matters: In announcing the purchase, United stressed it would be providing passengers with 30% more available seats on aircraft with significantly lower emission rates while creating approximately 25,000 new unionized jobs by 2026.
United CEO Scott Kirby noted the purchase “underscores the critical role United plays in fueling the broader U.S. economy – we expect the addition of these new aircraft will have a significant economic impact on the communities we serve in terms of job creation, traveler spending and commerce.”
UAL Price Action: United’s stock trades up about 1% to $53 per share at publication time.
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