United Airlines is ordering 100 Boeing 787, with options for 100 more, that the manufacturer should deliver from 2024-32.
These aircraft will replace the Boeing 767 fleet by 2030, as well as some Pratt & Whitney-powered 777s, that “will hit 30 years of age,” says Gerry Laderman, United's CFO. He says about 120 aircraft will reach that age over the next decade. Some of the oldest 767s already have met that milestone.
Under the terms of the order, United can choose between the 787-8, -9 and -10 variants.
United also announced plans to exercise 44 Boeing 737 MAX options. “They were always part of the United Next plan when we were looking at building up the domestic network through 2026,” says Laderman. Boeing is scheduled to deliver those aircraft between 2024-26.
Looking beyond 2026, the carrier just booked an additional 56 MAX aircraft, for delivery in 2027-28. Those MAX aircraft will replace some of the oldest narrowbodies, as well as provide “potential incremental growth,” Laderman says.
Andrew Nocella, United’s executive vice president and CCO, points to the economics of the 787 and says “every time we replace one of these older 767s or 777-200ERs, we make more money.” He says the 787 is 25% more fuel efficient than the older models it replaces, and it flies faster, carries twice as much cargo and includes more premium seats.
While United did not disclose the price of the order, Laderman says the airline expects $9 billion of capital expenditures in 2023 with the bulk of that for new aircraft. In 2024 that figure will rise to $11 billion.
With these orders, United plans to take delivery of about 700 narrowbody and widebody aircraft by 2032, including about two per week in 2023 and three per week in 2024.
To accommodate this growing fleet, United hired 15,000 people in 2022—more than 1,000 of whom were aircraft mechanics. It plans to hire 7,000 maintenance technicians by 2026, some 2,000 of whom will join in 2023.
While United CEO Scott Kirby says the airline does not plan to disclose plans today for additional 787 maintenance capabilities, he notes: “We did just open a new hangar in Brazil that is going to be staffed inhouse.”
In July, United confirmed to Aviation Week that it was leasing a hangar in Rio de Janeiro that TAP used to operate. “We plan to use it for work on UAL aircraft, not third party,” said a representative.
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