United Airlines Unveils Historic Order to Purchase Up To 200 New Boeing Widebody Planes

Rhea-AI Summary

United Airlines has placed a historic order for 100 Boeing 787 Dreamliners, with options for an additional 100, marking the largest widebody order by a U.S. carrier. The airline anticipates taking delivery of around 700 new aircraft by 2032, with a significant focus on modernizing its fleet to enhance fuel efficiency and customer experience. This move aligns with United’s strategic growth initiatives, including the United Next plan, expected to improve cost management and lower emissions by replacing older aircraft. The investments are projected to strengthen United's position as a leading global airline.

Positive

• Historic order of 100 Boeing 787 Dreamliners, the largest by a U.S. carrier.
• Plans to take delivery of 700 new aircraft by 2032, enhancing fleet capacity and flexibility.
• Significant improvement in fuel efficiency and reduction in carbon emissions per seat.
• Strengthening of international network through enhanced service options and new destinations.
• Potential for increased hiring, with 15,000 jobs added in 2022 and plans for more in 2023.

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• None.

Firm order for 100 new 787 Dreamliners - plus options to add 100 more - represents largest widebody aircraft order by a U.S. carrier in commercial aviation history

Airline now expects to take delivery of about 700 new narrow and widebody aircraft by 2032, including an average of more than two every week in 2023 and three a week in 2024

Order builds on United's strengths: leading U.S. international gateways, robust domestic network supporting the global fleet, premium onboard experience and most widebodies among North American carriers

CHICAGO, Dec. 13, 2022 /PRNewswire/ -- United Airlines today announced the largest widebody order by a U.S. carrier in commercial aviation history: 100 Boeing 787 Dreamliners with options to purchase 100 more. This historic purchase is the next chapter in the ambitious United Next plan and will bolster the airline's leadership role in global travel for years to come.

United expects to take delivery of the new widebody planes between 2024 and 2032 and can choose among the 787-8, 9 or 10 models, providing flexibility to support a wide range of routes.

United also exercised options to purchase 44 Boeing 737 MAX aircraft for delivery between 2024 and 2026 - consistent with the United Next 2026 capacity plan - and ordered 56 more MAX aircraft for delivery between 2027 and 2028.

The airline now expects to take delivery of about 700 new narrow and widebody aircraft by the end of 2032, including an average of more than two every week in 2023 and more than three every week in 2024.

Additionally, United continues its unprecedented effort to upgrade the interiors of its existing fleet. More than 90% of the carrier's international widebodies now feature the United Polaris® business class seat, as well as United Premium Plus® seating – upgrades for the remaining aircraft will be completed by the summer of 2023. United also will retrofit 100% of its mainline, narrow-body planes with its signature interior - about 100 aircraft are scheduled to be completed in 2023 with the remaining expected to be completed by the end of 2025.

Approximately 100 planes of the new widebody order are expected to replace older Boeing 767 and Boeing 777 aircraft, with all 767 aircraft removed from the United fleet by 2030, resulting in up to an expected 25% decrease in carbon emissions per seat for the new planes compared to the older planes they are expected to replace.

"United emerged from the pandemic as the world's leading global airline and the flag carrier of the United States," said United CEO Scott Kirby. "This order further solidifies our lead and creates new opportunities for our customers, employees and shareholders by accelerating our plan to connect more people to more places around the globe and deliver the best experience in the sky."

"With this investment in its future fleet, the 737 MAX and 787 will help United accelerate its fleet modernization and global growth strategy," said Stan Deal, president and CEO of Boeing Commercial Airplanes. "The Boeing team is honored by United's trust in our family of airplanes to connect people and transport cargo around the world for decades to come."

Driving Bottom Line Value

The firm order for 787 aircraft addresses United's current widebody aircraft replacement needs through the next decade – their greatly improved maintenance and fuel burn economics will further United's efforts to improve its overall cost profile. In partnership with Boeing, this order also helps United maintain flexibility with the timing of widebody aircraft retirements.

At the same time, the 787 options allow United to continue to grow its global network and would help maintain the airline's industry-leading margins in international flying among U.S. carriers.

"This order solves for our current widebody replacement needs in a more fuel-efficient and cost-efficient way, while also giving our customers a best-in-class experience," said Gerry Laderman, United's EVP and Chief Financial Officer. "And if the future of long-haul flying is as bright as we think it will be, United is able to capitalize on those opportunities by exercising these new widebody options - I look forward to the incremental margin and earnings these aircraft will generate."

The exercised options for MAX aircraft are consistent with the 2026 capacity and two margin targets associated with the United Next plan. United also has started to build the order book for 2027 and beyond with the firm order for 56 additional MAX aircraft.

The Flag Carrier of the United States

With hubs in the nation's largest cities, United provides strategic gateways to international destinations across the Atlantic, Pacific and Latin America.

In the last two years alone, United added 13 new international destinations, 40 new international routes and extra trips to 10 existing international routes. This expansion includes service to London-Heathrow, where the airline added five new daily flights, for a total of 23 daily flights planned for summer of 2023, including an hourly shuttle there from New York/Newark.

United now serves double-digit international destinations from each of its U.S. hubs:

• 78 via Newark Liberty International Airport (EWR)
• 56 via George Bush Intercontinental Airport (IAH)
• 45 via Chicago O'Hare International Airport (ORD)
• 41 via Washington Dulles International Airport (IAD)
• 32 via San Francisco International Airport (SFO)
• 18 via Los Angeles International Airport (LAX)
• 17 via Denver International Airport (DEN)

"Our widebody fleet will be re-energized by these new 787 deliveries and further strengthen what we do best: connect people and unite the world with modern, customer friendly and fuel-efficient aircraft," said Andrew Nocella, United's EVP and Chief Commercial Officer. "United is uniquely positioned to capture international travel demand thanks to our global network, fleet size and gateway hubs. This combination represents a significant advantage for our business for years to come and another reason for business and leisure customers to choose United."

#1 Across the Atlantic

This past summer United became the largest airline between the U.S. and the Atlantic region, consisting of Europe, the Middle East, India and Africa.

Earlier this year, United kicked off the largest transatlantic expansion in its history with the launch of ten new flights – including to several places no other North American carrier serves like Amman, Jordan; Tenerife, Canary Islands; Ponta Delgada, Azores and Mallorca, Spain.

Next summer, United's Atlantic expansion will continue with new service to three cities – Malaga, Spain, Stockholm, Sweden; and Dubai, UAE – as well as six more flights to some of the most popular destinations in Europe, including Rome, Paris, Barcelona, London, Berlin and Shannon.

In total, United will fly nonstop to 37 cities in Europe, Africa, India and the Middle East next summer, more than all other U.S. airlines combined.

#1 Across the Pacific

United is also the largest carrier from the U.S. across the Pacific and will serve 20 transpacific routes at the beginning of 2023, with more returning throughout the year. Excluding Mainland China and Hong Kong, United's capacity across the Pacific will exceed 2019 levels next year.

The most notable expansion in this region has been in the South Pacific, and in Australia in particular. United was the only airline to operate continuously between the U.S. and Australia during the pandemic, maintaining a vital supply chain link and helping families stay connected. As Australia gears up for its first full southern summer tourist season in nearly three years, United will have more flights connecting Australia and the U.S. than any other airline.

United offers a total of six nonstop routes that link Australia's three largest cities – Sydney, Melbourne and Brisbane – with three key U.S. tourist and trade hubs – San Francisco, Los Angeles and Houston. Plus, the recently launched codeshare partnership with Virgin Australia also allows travelers to make easy connections to more than 20 additional cities within Australia, helping support the country's broader economic recovery.

United also continues to build back other transpacific services. In January 2023, the airline plans to fly 48 times per week from the Continental U.S. to Japan, including new service from Newark/New York to Haneda and the relaunch of San Francisco to Osaka.

New Flights to Africa, India & the Middle East

In the last three years, United added five new nonstop flights to four cities in Africa and now offers nonstop routes to Cape Town and Johannesburg from Newark/New York and to Accra, Ghana; Lagos, Nigeria and Cape Town from Washington D.C.

United's recent agreement with Emirates, which begins with a new nonstop flight between Newark/New York and Dubai, UAE in March 2023, will significantly expand the airline's reach in the Middle East and India, opening easy connections to nearly 100 cities in the region on Emirates and its sister airline flydubai.

Strategic Collaborations

United has forged alliances and strategic agreements with many of the world's leading global airlines and travel companies to give customers even more options and help make world travel more accessible. The airline was a founding member of Star Alliance, giving customers reciprocal travel and loyalty program benefits on 26 global airlines and allowing easy connections almost anywhere in the world. United has close working relationships with its joint venture partners the Lufthansa Group, Air Canada, All Nippon Airways, and Air New Zealand and holds codeshare agreements with leading airlines like Virgin Australia and Emirates.

The 787 Customer Experience

Each United 787 features four on-board products: United Polaris business class, United Premium Plus, Economy Plus®, and economy, providing an elevated and consistent experience throughout the airline's international widebody fleet. Consistently ranked by customers as the highest scoring aircraft in United's fleet in terms of overall satisfaction, all 787 aircraft also include larger windows, LED lighting, a lower cabin altitude setting and higher humidity, so customers feel more hydrated and better rested upon arrival.

"Our fleet of 787 aircraft brings together the best parts of the United customer experience - helpful, friendly service, terrific amenities and best-in-class technology," said Linda Jojo, United's EVP and Chief Customer Officer. "And customers just love our Polaris products – from our airport lounges, amenities and seat-back screens to big seats that turn into beds, luxury blankets and pillows and plenty of room for storage. We're proud to offer customers more lie-flat seat options than all other U.S. carriers combined."

Each United Polaris business class seat offers all-aisle access, wool blend seat covers for breathability and a memory foam layer for extra comfort, as well as 16-inch high-definition touch screens and noise-reducing headphones that include free access to more than 1,000 movies, TV shows, audio playlists, podcasts, and games.

All United Premium Plus seats include a six-inch recline, 13-inch seat back screens, and an amenity kit with pillow and blanket at every seat. Economy Plus and economy customers have 10-inch screens at every seat.

The seatback experience throughout the entire 787 aircraft also includes United's Inflight Entertainment System (IFE) with accessibility features for people with hearing or visual disabilities. And United plans to add Bluetooth connectivity throughout new 787 aircraft so customers have the option of using their own headphones.

Premium Onboard Amenities

United Polaris customers also receive custom Saks Fifth Avenue bedding that includes a duvet, day blanket, and pillow - items like mattress pads, slippers and United's signature cooling gel pillows are available upon request. Plus, earlier this year United debuted new amenity kits from Away that include Sunday Riley skincare products.

United Polaris Lounge

Every United Polaris customer also has access to the United Polaris Lounge – with locations in Chicago, Houston, Los Angeles, Newark/New York, San Francisco and Washington D.C. – with amenities that include spa-like shower facilities, a full-service restaurant and curated buffet, as well as daybeds with soft lighting and white noise.

Creating Tens of Thousands of Careers

Today's order also is expected to lead to increased hiring – the airline hired 15,000 people in 2022 and is on track to add another 15,000 next year. For more information about United's recruiting and hiring efforts, visit careers.united.com.

"When I look at our culture and the trajectory of our brand and company, I know this is the best time to join United Airlines," said Kate Gebo, United's EVP of Human Resources and Labor Relations. "We're not just creating jobs – these are long-lasting careers that offer great pay, outstanding benefits and flight privileges to see the world. And the best part is we're actively hiring across every role at the airline."

Pilots

United continues to see strong interest in pilot roles, from military and civilian backgrounds as well as from other carriers. In 2022, the airline hired about 2,400 pilots and plans to add more than 2,500 pilots in 2023, with a goal to add 10,000 pilots this decade.

Earlier this year, United opened the United Aviate Academy, with a goal of training 5,000 new pilots at the school by 2030 with the goal of at least half being women or people of color. To date, the airline has received more than 22,000 applications for admissions - nearly 70% of applicants are women or people of color - and the Aviate Academy's 2022 graduating class is more than 60% diverse.

Flight Attendants

United will hire more than 18,000 new flight attendants in the coming years with more than 4,000 expected to join the team in 2023 - earlier this year, the airline received 8,000 applications in less than 72 hours for open flight attendant roles.

Early next year, United will open a state-of-the-art Inflight Training Center in Houston featuring 50,000 square feet of classroom space and an aquatics center for safety training. The new facility allows for the training of more than 8,000 flight attendants per year and provides a more realistic customer service environment that will better prepare those in training to deliver the best possible experience to customers.

Aircraft Maintenance

United expects to hire more than 7,000 maintenance technicians by 2026 to provide upkeep of its fleet and ensure facilities meet the needs of employees and customers. The airline hired more than 1,000 aircraft mechanics already this year and expects to add 2,000 more in 2023.

In November 2022, United launched Calibrate, a 36-month apprenticeship program to grow and diversify its pipeline of aircraft technicians – through that program, the airline plans to train 1,000 new aircraft technicians by 2026, with the goal of at least half being women or people of color.

Airport Operations

This year alone, United hired more than 8,500 new customer service, ramp, and gate agents and expects to add another 7,000 in 2023. These are critical roles in United's operation - the people who work the gate or on the tarmac help ensure customers have a safe, enjoyable and on-time travel experience.

Local Hiring

In 2023, United expects to hire across each its U.S. hubs:

•  
• 2,600+ new jobs in Chicago / ORD
• 2,200+ new jobs in San Francisco / SFO
• 2,100+ new jobs in Newark/New York / EWR
• 1,800+ new jobs in Houston / IAH
• 1,800+ new jobs in Denver / DEN
• 1,100+ new jobs in Washington, D.C. / IAD
• 400+ new jobs in Los Angeles / LAX

Better Fuel Efficiency & Lower Carbon Emissions

United has set an ambitious goal to be 100% green by reducing its greenhouse gas emissions by 100% by 2050, without relying on traditional carbon offsets. To get there, the airline is introducing more fuel-efficient aircraft into its fleet and investing in sustainable aviation fuel and other decarbonization technologies.

According to Boeing, the 787 Dreamliner contributes up to an 25% improvement in fuel efficiency and lower carbon emissions per seat compared with the airplanes it replaces through new engines, an expanded use of lightweight composite materials, more efficient systems applications and modern aerodynamics.

Boeing has worked to reduce the sound footprint - the distance across which disturbing noise is heard - for the 787 Dreamliners, which incorporate new technologies to ensure that no sound of 85 decibels - about the level of loud traffic heard from the side of the road - leaves the airport boundaries. In fact, the noise footprint of the 787 is more than 60 percent smaller than those of the airplanes it replaces. For more information about United's environmental impact, visit crreport.united.com.

About United

United's shared purpose is "Connecting People. Uniting the World." From our U.S. hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers. United is bringing back our customers' favorite destinations and adding new ones on its way to becoming the world's best airline. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, relating to, among other things, the potential impacts of the Company's aircraft orders, including on the Company's financial targets, route and capacity plans and emissions-related targets, and the Company's financial targets. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about the Company's future financial results, goals, plans, commitments, strategies and objectives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond the Company's control and could cause the Company's future financial results, goals, plans, commitments, strategies and objectives to differ materially from those expressed in, or implied by, the statements. Words such as "should," "could," "would," "will," "may," "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "projects," "forecast," "guidance," "outlook," "goals," "targets," "confident," "optimistic," "dedicated" and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. All statements, other than those that relate solely to historical facts, are forward-looking statements.

Additionally, forward-looking statements include conditional statements and statements that identify uncertainties or trends, discuss the possible future effects of known trends or uncertainties, or that indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this press release are based upon information available to us on the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law or regulation.

Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: any delay or inability of the Company to realize the expected benefits of the transactions, the adverse impacts of the ongoing COVID-19 global pandemic on our business, operating results, financial condition and liquidity; execution risks associated with our strategic operating plan; changes in our network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into less favorable aircraft orders, as well as any inability to accept or integrate new aircraft into our fleet as planned; any failure to effectively manage, and receive anticipated benefits and returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions; adverse publicity, harm to our brand, reduced travel demand, potential tort liability and voluntary or mandatory operational restrictions as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners or another airline; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity, including as a result of alliances, joint business arrangements or other consolidations; our reliance on a limited number of suppliers to source a majority of our aircraft and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; disruptions to our regional network and United Express flights provided by third-party regional carriers; unfavorable economic and political conditions in the United States and globally (including inflationary pressures); reliance on third-party service providers and the impact of any significant failure of these parties to perform as expected, or interruptions in our relationships with these providers or their provision of services; extended interruptions or disruptions in service at major airports where we operate and space, facility and infrastructure constrains at our hubs or other airports; geopolitical conflict, terrorist attacks or security events; any damage to our reputation or brand image; our reliance on technology and automated systems to operate our business and the impact of any significant failure or disruption of, or failure to effectively integrate and implement, the technology or systems; increasing privacy and data security obligations or a significant data breach; increased use of social media platforms by us, our employees and others; the impacts of union disputes, employee strikes or slowdowns, and other labor-related disruptions on our operations; any failure to attract, train or retain skilled personnel, including our senior management team or other key employees; the monetary and operational costs of compliance with extensive government regulation of the airline industry; current or future litigation and regulatory actions, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; costs, liabilities and risks associated with environmental regulation and climate change, including our climate goals; high and/or volatile fuel prices or significant disruptions in the supply of aircraft fuel (including as a result of the Russia-Ukraine military conflict); the impacts of our significant amount of financial leverage from fixed obligations, the possibility we may seek material amounts of additional financial liquidity in the short-term, and the impacts of insufficient liquidity on our financial condition and business; failure to comply with financial and other covenants governing our debt, including our MileagePlus® financing agreements; the impacts of the proposed phaseout of the London interbank offer rate; limitations on our ability to use our net operating loss carryforwards and certain other tax attributes to offset future taxable income for U.S. federal income tax purposes; our failure to realize the full value of our intangible assets or our long-lived assets, causing us to record impairments; fluctuations in the price of our common stock; the impacts of seasonality, weather events, infrastructure and other factors associated with the airline industry; increases in insurance costs or inadequate insurance coverage and other risks and uncertainties set forth in Part I, Item 1A. Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as well as other risks and uncertainties set forth from time to time in the reports we file with the U.S. Securities and Exchange Commission.

The foregoing list sets forth many, but not all, of the factors that could impact our ability to achieve results described in any forward-looking statements. Investors should understand that it is not possible to predict or identify all such factors and should not consider this list to be a complete statement of all potential risks and uncertainties. In addition, certain forward-looking outlook provided in this press release relies on assumptions about the duration and severity of the COVID-19 pandemic, the timing of the return to a more stable business environment, the volatility of aircraft fuel prices, customer behavior changes and return in demand for air travel, among other things (together, the "Recovery Process"). The COVID-19 pandemic and the measures taken in response may continue to impact many aspects of our business, operating results, financial condition and liquidity in a number of ways, including labor shortages (including reductions in available staffing and related impacts to the Company's flight schedules and reputation), facility closures and related costs and disruptions to our and our business partners' operations, reduced travel demand and consumer spending, increased operating costs, supply chain disruptions, logistics constraints, volatility in the price of our securities, our ability to access capital markets and volatility in the global economy and financial markets generally. If the actual Recovery Process differs materially from our assumptions, the impact of the COVID-19 pandemic on our business could be worse than expected, and our actual results may be negatively impacted and may vary materially from our expectations and projections. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change. For instance, we regularly monitor future demand and booking trends and adjust capacity, as needed. As such, our actual flown capacity may differ materially from currently published flight schedules or current estimations.

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SOURCE United Airlines

FAQ

What is United Airlines' historic aircraft order announced in December 2022?

United Airlines announced a firm order for 100 Boeing 787 Dreamliners, with options to purchase 100 more, marking the largest widebody order by a U.S. carrier.

How many new aircraft does United Airlines expect to deliver by 2032?

United Airlines expects to take delivery of about 700 new narrow and widebody aircraft by the end of 2032.

What benefits will United Airlines gain from the new Boeing 787s?

The new Boeing 787s are expected to improve fuel efficiency, reduce carbon emissions, and enhance customer experience, while aiding in fleet modernization.

What is the significance of the order for United Airlines' growth strategy?

The order supports United Airlines' United Next plan, which focuses on expanding its global network and improving operational costs.

How will the new deliveries affect United Airlines' hiring plans?

The increased fleet capacity is expected to lead to significant hiring, with United planning to add thousands of positions in various roles.