United Airlines Holdings Inc. announced late Tuesday that it has placed orders for an additional 110 new jets from Boeing Co. and Airbus SE, demonstrating its confidence in the continued demand for air travel.
United converted previous options and purchase rights into firm orders for 50 Boeing 787 Dreamliner jets, which are scheduled for delivery between 2028 and 2031. In addition, the airline has ordered 60 Airbus A321neo single-aisle jets, set to be delivered between 2028 and 2030.
Furthermore, United has secured options for up to 50 more Boeing 787 Dreamliners and purchase rights for an additional 40 A321neos towards the end of the decade.
United’s Chief Executive, Scott Kirby, expressed his belief in the airline’s strategy, stating, “I’m convinced our strategy is the right one as we continue to add new, larger aircraft to take full advantage of our growing flying opportunities both internationally and domestically.”
This move supports United’s United Next plan, launched earlier this year, which aims to maximize savings through the use of newer, fuel-efficient aircraft. These aircraft not only offer premium seating options but also enable the company to sell highly profitable first-class and business seats that are rarely discounted.
Given the recent surge in jet-fuel prices, airlines are increasingly focused on fuel-efficient jets to mitigate costs. United’s expansion plans extend their already successful United Next plan into the next decade and beyond, according to Kirby.
In total, United anticipates receiving approximately 800 new narrowbody and widebody aircraft between 2023 and the end of 2032.
Despite closing the regular trading day down 2.6%, shares of United remained flat in the extended session on Tuesday. So far this year, the airline’s stock has gained 7.5%, outperforming the S&P 500 index and the U.S. Global JETS ETF.
United’s decision to invest in new jets reflects its commitment to meeting the growing demand for air travel while remaining competitive in the industry.
