: United Airlines orders 110 Boeing and Airbus jets, betting on ‘growing travel opportunities’

by | Oct 3, 2023 | Stock Market

United Airlines Holdings Inc. said late Tuesday it had ordered an additional 110 new jets from Boeing Co. and Airbus SE as it expects air-travel demand to continue unabated. United
converted previous options and purchase rights into “firm” orders for 50 Boeing 787 Dreamliner jets for delivery between 2028 through 2031, and 60 Airbus A321neo single-aisle jets for delivery between 2028 and 2030.

United also secured new options for up to 50 more 787 Dreamliners and purchase rights for an additional 40 A321neos at the end of the decade, it said. “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,” United Chief Executive Scott Kirby said in a statement. United in 2021 launched its United Next plan, promising more savings by using newer, more fuel-efficient jets, which also often offer premium seating — meaning the company would be able to sell the more profitable, rarely discounted first-class and business seats. Airlines are particularly keen on fuel-efficient jets as jet-fuel prices have skyrocketed in recent weeks and put a damper on airline stocks. Tuesday’s order news takes “our already successful United Next plan into the next decade and beyond,” Kirby said. All told, United expects to take delivery of about 800 new narrowbody and widebody aircraft between 2023 and the end of 2032, the airline said. Shares of United were flat in the extended session Tuesday after ending the regular trading day down 2.6%. So far this year, the airline’s stock has gained 7.5%, compared with an advance of 10% for the S&P 500 index
and contrasting with a loss of around 4% for the U.S. Global JETS ETF
in the same period.

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