United Invests in Next Generation Blended Wing Aircraft Start-Up JetZero

Rhea-AI Summary

United Airlines (UAL) has announced an investment in JetZero, a blended wing body (BWB) aircraft start-up, with a conditional path to purchase up to 200 airplanes. The innovative Z4 aircraft design could reduce fuel burn by up to 50% per passenger mile compared to similar-sized aircraft.

JetZero's Z4 is designed to carry 250 passengers and features a revolutionary 'all-wing' design that reduces drag and produces lift across the entire wingspan. The company recently secured a $235 million contract from the U.S. Air Force to accelerate development, with first flight expected in 2027.

The aircraft promises enhanced passenger experience with flexible seating options, larger seats, dedicated overhead bins, and improved accessibility. On routes like New York/Newark to Palma de Mallorca, the Z4 could use up to 45% less fuel compared to current twin-aisle aircraft. The design is compatible with existing airport infrastructure and can operate using conventional jet fuel or sustainable aviation fuel blends.

Positive

• Potential 50% reduction in fuel burn per passenger mile
• Path to acquire up to 200 aircraft
• Compatible with existing airport infrastructure - no additional investment needed
• Ability to use both conventional and sustainable aviation fuel
• Enhanced passenger experience with larger seats and improved accessibility

Negative

• Conditional purchase agreement subject to development milestones
• Technology still unproven - first flight not until 2027
• Investment amount not disclosed

Collaboration includes a path for United to purchase up to 200 airplanes¹

JetZero's Z4 blended wing body or "all wing" design has the potential to enhance passenger experience and improve fuel efficiency by up to 50%² 

JetZero was awarded a $235 million contract by the U.S. Air Force to fast-track the development of its commercial demonstrator with first flight expected in 2027

CHICAGO, April 24, 2025 /PRNewswire/ -- United today announced an investment in blended wing body (BWB) aircraft start-up JetZero. The company is creating an aircraft design that has the potential to deliver jet fuel efficiency and a greatly enhanced customer experience. The investment includes a path to order up to 100 airplanes and an option for an additional 100. The conditional purchase agreement is based on JetZero achieving development milestones, including flight of a full-scale demonstrator in 2027, among other conditions, including that the aircraft meet United's safety, business and operating requirements. 

JetZero's innovative design reduces drag and produces lift across the entire wingspan, which could lead to as much as 50% reduction in fuel burn per passenger mile compared to a similar sized aircraft. The technology could potentially help United lower its carbon emissions while reducing the cost of operations. In 2023, the U.S. Air Force announced a $235 million contract to JetZero to fast-track the development of JetZero's full scale demonstrator. The JetZero Z4 airplane is designed to accommodate 250 passengers and fly on conventional jet fuel, with propulsion systems able to utilize sustainable aviation fuel blends.

"If successful, JetZero has the potential to evolve our core mainline business by developing aircraft with a bigger, more comfortable cabin experience for our customers while increasing fuel efficiency across our network," said Andrew Chang, head of United Airlines Ventures (UAV). "United Airlines Ventures® was created to support our efforts to find innovative companies that can enhance the customer travel experience and help the airline lower its carbon footprint, and we believe JetZero reflects that philosophy."  

"United's investment in our company signals the industry's belief that new, innovative technology is needed in order to achieve the efficiency and cost savings that will be required to meet the continued growth in demand for air travel across the globe," said Tom O'Leary, CEO and co-founder of JetZero. "JetZero is focused on one key technology – the airframe – that enables us to address all of the barriers to growth. This program is the only one in development today that promises efficiency and an elevated customer experience."

Both the airplane's shape, and the way JetZero plans to enter the plane into service, address industry pain points. The design contributes to a more efficient operation due to its shape and the higher altitude at which it will fly. For instance, a flight from New York/Newark to Palma de Mallorca, Spain would use up to 45 percent less fuel compared to the twin-aisle aircraft that operate that route today. The airplane also is expected to integrate readily into today's airport infrastructure, requiring no new accommodations for jet bridges, runways or taxiways. 

The aircraft design has the potential to also offer improvements to the passenger experience like flexible seating options, larger seats across all classes and dedicated overhead bin space for each seat. Additionally, the design streamlines the boarding process with a main boarding door that is wider than that of a comparably sized aircraft, leading to multiple aisles and passenger cabin bays for more efficient passenger distribution. It may further enhance accessibility by featuring wider aisles and handicap-accessible lavatories, creating a comfortable travel environment for all passengers and in-flight crew.

JetZero's agreement with the Air Force focuses on advancing airframe technology and capabilities, showcasing its potential, and providing the Department of Defense and commercial industry more options to reduce fuel consumption and emissions. Several military aircraft configurations can be made with this design, including air transport and refueling tanker variants, which collectively account for approximately 60% of the Air Force's total annual jet fuel consumption.  

United's corporate venture capital fund, United Airlines Ventures, enables the airline to invest in emerging companies that have the potential to influence the future of travel. UAV has made investments in start-ups developing innovative technologies that have the potential to revolutionize aerospace developments, create value for customers and United's operation and complement United's goal of net zero emissions by 2050. UAV has made a number of alternative aircraft investments including:

• Hybrid-electric 
• Hydrogen-powered 
• Electric Air Taxis (eVTOLs) 

About JetZero

JetZero will deliver the world's first commercial all-wing design airplane. With up to 50% lower fuel burn compared to existing commercial airliners, JetZero's Z4 offers the aviation industry a clear path to delivering a 250 passenger airplane with 5,000 nautical mile range, using conventional engines while reducing its carbon footprint. Working alongside the US Air Force, NASA, and the FAA, and backed by decades of investment and research into blended-wing technology, JetZero looks to enter commercial service in 2030. 

About United

At United, Good Leads The Way. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers and is now the largest airline in the world as measured by available seat miles. 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".

Forward-Looking Statements and Other Important Information

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 relating to, among other things, plans and projections regarding the company's environmental, social or governance (ESG) goals, targets, commitments, strategies and initiatives and related business and stakeholder impacts. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about our future financial results, plans, objectives, goals, targets, commitments, strategies and initiatives 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 our control and could cause our future financial results, plans, objectives, goals, targets, commitments, strategies and initiatives to differ materially from those expressed in, or implied by, the statements. These risks, assumptions, uncertainties and other factors include, among others, any failure to meet stated ESG goals, targets, commitments, strategies and initiatives in the time frame expected or at all as a result of many factors, including changing societal, market, competitive, regulatory or stakeholder expectations; any delay or inability of United Airlines to realize the expected benefits of the investment; and any delay or failure of any technology to be fully developed or become functional or marketable or to serve the purpose for which it was designed. No forward-looking statement can be guaranteed. Forward-looking statements in this press release should be evaluated together with the many risks and uncertainties that affect United's business and market, particularly those identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections in United's Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. Risks and uncertainties related to United's environmental compliance, climate commitments and climate strategy are further described in Part I, Item 1A. Risk Factors of United's Annual Report on Form 10-K for the fiscal year ended December 31, 2023— "We are subject to many forms of environmental regulation and liability as well as risks associated with climate change and may incur substantial costs as a result. In addition, failure to achieve or demonstrate progress towards our climate goals may expose us to liability and reputational harm." 

The statements included in this press release are made only as of the date of this press release and except as otherwise required by applicable law or regulation, United Airlines undertakes no obligation to publicly update or revise any statement, whether as a result of new information, future events, changed circumstances or otherwise. In particular, United Airlines reserves the right to change, amend, supplement or abandon some or all of the statements regarding goals, targets, commitments, strategies, initiatives, intentions and other statements from time to time without notice. 

In addition, some of our disclosures in this press release are estimates or based on assumptions due to inherent measurement uncertainties.

¹ Subject to a number of conditions, including United criteria and JetZero performance and milestones
² Compared to a comparably sized tube-and-wing aircraft. Based on fuel burn per passenger mile. 

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SOURCE United Airlines

FAQ

What is the potential fuel efficiency improvement of JetZero's aircraft for UAL?

JetZero's blended wing body design could reduce fuel burn by up to 50% per passenger mile compared to similar-sized aircraft.

How many JetZero aircraft could United Airlines (UAL) potentially order?

United has secured a path to order up to 100 aircraft with an option for an additional 100, totaling 200 potential aircraft.

When is JetZero's first demonstration flight expected for UAL?

JetZero's first demonstration flight is expected in 2027, which is one of the development milestones required by United Airlines.

What is the passenger capacity of JetZero's Z4 aircraft for UAL?

The JetZero Z4 airplane is designed to accommodate 250 passengers.

How much fuel could UAL save on specific routes with JetZero aircraft?

On routes like New York/Newark to Palma de Mallorca, the aircraft could use up to 45% less fuel compared to current twin-aisle aircraft.