United Airlines announced on Tuesday a significant expansion to its fleet, as part of the ongoing United Next strategy. The airline has ordered an additional 110 aircraft from Boeing (NYSE:BA) and Airbus, including 50 Boeing 787-9s and 60 Airbus A321neos. Deliveries are scheduled to begin in 2028 and continue through the early 2030s.
The airline has also secured options for an additional 50 Boeing 787s and purchase rights for 40 more A321neos by the end of the decade. This move reflects United's positive outlook on industry growth, as confirmed by CEO Scott Kirby (NYSE:KEX).
The new orders come on the heels of a successful second quarter for United Airlines, in which profits tripled, prompting the airline to raise its annual outlook. As part of their growth strategy, United anticipates adding about 800 new aircraft to its fleet by the end of 2032.
Kirby emphasized that these orders play a crucial role in their long-term growth strategy, operational cost reduction, and customer experience enhancement. The new aircraft will maintain existing customer amenities while offering increased fuel efficiency.
The new aircraft from Airbus are part of the A320neo Family and provide an unrivaled passenger experience in the Airbus Airspace cabin. They offer lower carbon footprints, noise reduction by 50%, and fuel savings by 20%.
The Boeing 787-9s are known for their strategic advantages and fuel efficiency, reducing fuel use and emissions by up to 25%. With this order, United is set to become the largest global operator of the 787s, boasting a total of 150 firm orders.
United's plan also includes retiring its older 757 and 767 fleets this decade, replacing them with about 200 Boeing 787s by 2030. The airline aims to operate nearly 280 Airbus A321s by 2030 and increase seat capacity per departure to over 145 seats through its "Gauge growth" strategy.
Despite potential supply chain disruptions, United's chief commercial officer Andrew Nocella remains optimistic about the company's future, including a "disproportionate" long-haul expansion. The airline is focused on meeting growing demand despite limited resources, addressing capacity constraints at hubs like New York area airports.
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