International
United Airways Takes a $200 Million Hit From Max 9 Grounding
Skift Take
United is making some changes to its long-term fleet plans after the FAA positioned manufacturing constraints on Boeing.
United Airways reported it took a $200 million hit throughout the first-quarter from the Max 9 grounding, in line with a regulatory submitting posted Tuesday.
The Federal Aviation Administration grounded the Max 9 for almost one month in January after a door plug abruptly blew off an Alaska Airways aircraft mid-air. United and Alaska are the one two airways within the U.S. to function the Max 9.
The grounding pressured United to cancel hundreds of flights and it additionally led the FAA to halt the manufacturing growth of the 737 Max line. Boeing has additionally been hampered by certification delays for the Max 7 and Max 10, inflicting airways to reevaluate their fleet plans.
United is a type of airways. It initially anticipated to obtain 80 Max 10s in 2024 – now it anticipates it gained’t obtain any this 12 months. United mentioned it has transformed a part of its Max 10 order to the Max 9 from 2025 to 2027.
United CEO Scott Kirby talked about on the JPMorgan Industrials Convention in March that the provider had requested Boeing to “cease” making the Max 10.
To make up for the delays, United plans to lease 35 new Airbus A321neos, that are anticipated to reach in 2026 and 2027. The airline now anticipates it can obtain 61 narrowbody plane and 5 widebody plane to be delivered in 2024. Initially, United anticipated to obtain 101 narrowbodies.
United executives will maintain a name with analysts about first-quarter earnings on Wednesday at 10:30 a.m. ET.