CHICAGO- In compliance with an SEC filing, United Airlines (UA) has opted to exclude the Boeing 737 MAX 10 from its fleet plan starting this year and continuing until after 2025.
This decision follows a series of issues related to Boeing’s quality control and the extended certification delays for this particular aircraft model.
United Boeing 737 MAX 10
The recent incident involving an Alaska Airlines (AS) Boeing 737 MAX 9, where an exit door plug dislodged, prompted the Federal Aviation Administration to ground MAX 9s with a similar configuration. Subsequent inspections revealed loose bolts on door plugs, with Boeing taking responsibility for the identified problems. Boeing’s persistent quality lapses over the past years seem to have culminated in this recent development.
Several airline CEOs expressed their concerns about Boeing’s performance, emphasizing the need for the company to address its issues. United Airlines CEO Scott Kirby also weighed in, stating that due to the ongoing challenges at Boeing, the airline must contemplate future plans without the MAX 10, which is yet to receive certification.
While Kirby did not explicitly declare the cancellation of United’s entire MAX 10 order (amounting to 277 planes), he indicated the necessity to prepare for uncertainties in light of Boeing’s ongoing challenges.
10-K Filing Report
Earlier today, the airline submitted its 10-K filing, an exhaustive annual report detailing the financial performance of a publicly traded company. The filing discloses that United has initiated the planning of its fleet expansion without incorporating the MAX 10s. A report segment delineates the carrier’s outstanding deliveries and the anticipated number of aircraft it foresees receiving in the upcoming years.
Illustrated in the photo below, in accordance with its Boeing contract, United initially anticipated the receipt of 80 MAX 10s in 2024 alone, but the latest update indicates an expectation of zero deliveries.
From 2024 to 2025, United originally had scheduled to acquire over half of its total MAX 10 orders.
While the 10-K filing explicitly states that United does not anticipate any MAX 10 deliveries in the coming years, the airline underscores, “Due to the delay in the certification of the 737 MAX 10 aircraft, we are unable to forecast the expected delivery period accurately.”
Upcoming Aircraft Update
While United does not anticipate the arrival of the MAX 10s in the near future, the airline is still anticipating additional MAX 8s, 9s, and 787 Dreamliners.
As indicated in the provided table, United originally had contractual expectations for 85 Boeing aircraft this year. Still, the current outlook has adjusted to 63, including seven unspecified variants of the 787, 37 MAX 8s, and 19 MAX 9s.
Beyond its Boeing commitments, United holds over 200 firm agreements with Airbus, with 45 dedicated to A350s, although uncertainties exist regarding the delivery of these widebodies.
Following an expansion of its A321neo order towards the close of 2023, United now boasts 126 firm commitments, with an expectation of receiving 25 this year, some of which have already been delivered.
The initial projection was for 26 deliveries. Despite the A321XLR’s anticipated commercial entry into service this year, United does not plan to receive its first unit until the conclusion of 2025.
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