CHICAGO- United Airlines (UA) anticipates a shortfall of around 102 new aircraft from Boeing in 2024 compared to the initially agreed-upon contractual terms. This discrepancy compels the airline to reassess its fleet plan and adjust delivery expectations for the upcoming years.
As per a filing with the US Securities and Exchange Commission (SEC) on February 29, the Chicago-based carrier now anticipates Boeing to deliver 63 aircraft in 2024, a significant reduction from the previously expected 165.
United Boeing Aircraft Delivery Update
These delivery setbacks pose a substantial risk to United’s ability to carry out its “United Next” fleet transformation initiative and impact its overall operational efficiency.
The delays coincide with Boeing grappling with various quality concerns related to its 737 MAX, prompting the Federal Aviation Administration (FAA) to issue warnings to the manufacturer.
United is actively exploring strategies to mitigate the consequences of receiving fewer new jets, including a potential reliance on alternative aircraft types and the postponement of aircraft retirements.
“If United Airlines is unable to secure additional aircraft at acceptable prices from Boeing or Airbus, or if Boeing or Airbus experiences delays in delivering aircraft or fails to provide sufficient support for its products, including those covered by firm orders under our United Next plan, the company’s operations could face significant and adverse impacts.
United Airlines Statement
United’s purchase agreements with Boeing included plans to introduce 80 new 737 Max 10 aircraft in 2024, 71 in 2025, and 126 in the subsequent years through 2033. However, United has removed these figures from its fleet plan, citing, “Due to the delay in the certification of the 737 Max 10 aircraft, we are unable to forecast the expected delivery period accurately.”
United anticipates that these challenges will persist “during the next couple of years,” potentially affecting its financial position, operational results, and cash flows.
Delivery Breakdown
According to data from Cirium fleets, United currently operates 164 Boeing 737 Max aircraft, comprising 85 Max 8s and 79 Max 9s.
Initially, the airline had anticipated receiving 43 additional Max 8s in the current year. However, this figure has been revised down to 37, with an additional six now slated for delivery in 2025.
Regarding the Max 9 model, United had contractual agreements to deliver 34 aircraft in 2024. The revised expectations now indicate that 19 of these will be received this year, with the remaining 15 scheduled for delivery in the following year.
United is relying on Boeing’s yet-to-be-certified 737 Max 10, with orders in place for 277 units of the largest variant within the Max family.
Boeing has consistently communicated its expectation to achieve certification for the Max 10 following the certification of the smallest variant, the Max 7. However, both aircraft types are facing substantial delays.
Boeing disclosed this year that an additional year is required to secure the Max 7’s certification due to a mandatory redesign of the anti-ice system. This delay further clouds the timeline for the Max 10.
Meanwhile, Boeing’s production of its two certified Max models – Max 8s and Max 9s – has experienced a notable slowdown in recent weeks, coinciding with a new FAA quality audit.
787 and Airbus Aircraft Hold-Ups
United’s anticipated delivery dates for the 787 Dreamliner have undergone slight adjustments. Initially, the airline was expecting eight of these widebody aircraft in 2024 and 18 in the subsequent year.
The revised projections now indicate the acquisition of seven in the current year and 18 in 2025. According to the airline, the remaining 125 units of the 787s on order with Boeing will likely be delivered after 2025.
United also foresees delays in Airbus deliveries, albeit to a lesser extent. Previous expectations included the receipt of 26 A321neos this year, 38 in 2025, and 62 between 2025 and 2033.
The updated outlook anticipates one fewer delivery in 2024, 24 next year, and 77 in the subsequent years. Furthermore, the delivery dates for United’s 50 on-order A321XLRs have shifted later, with the majority now slated to join the fleet after 2025.
Earlier this month, United’s chief financial officer, Mike Leskinen, expressed the company’s “deep disappointment” in Boeing’s delivery delays, highlighting plans to rely on “more Max 9 and A321 aircraft” to meet capacity commitments. Additionally, United intends to “extend the life” of certain aircraft.
Boeing continues to grapple with persistent quality and safety challenges, exemplified by a January incident that prompted the temporary grounding of Max 9s with mid-cabin door plugs globally – totaling 171 jets.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.
