United orders another 25 Boeing 737 MAX jets to prepare for recovery – About Your Online Magazine

(Reuters) – United Airlines Holdings Inc ordered 25 new Boeing 737 MAX aircraft to receive in 2023 and increased delivery of others while preparing to replace old jets and meet expected post-pandemic demand growth, the company said on Monday. market.

US airlines have parked and removed aircraft as the coronavirus pandemic has undermined demand, but are starting to position their businesses for a recovery as more vaccines are distributed across the country and globally.

“With several of our aircraft coming to the end of their life cycle and the growth opportunities that we know will exist in the COVID-19 recovery period, this agreement will help us grow as demand returns,” said commercial director Andrew Nocella in a memo.

In addition to Boeing’s new order, United said it has increased the delivery of 40 MAX aircraft previously ordered for 2022 and 5 for 2023, meaning it will have 94 new aircraft in its fleet over those two years.

In all, he has 188 orders for the Boeing 737 MAX, which ended in March 2019 after two fatal accidents. Regulators from the United States, Europe and Britain are among those who have approved the return of the jet to flight.

Its total financial commitments related to the purchase of new aircraft or spare engines or other aircraft improvements totaled about $ 24.3 billion in February 2021, the company said in a regulatory document.

United has 52 Boeing 777-200s that landed last week after an engine failure shortly after one of its flights took off from Denver, causing some potential headaches for the airline in the coming months.

The shares of Boeing and United jumped at the beginning of the session, with Boeing up 4.7%, to $ 221.91, and United, 3.8%, to $ 54.72.

(Reporting by Sanjana Shivdas in Bengaluru and Tracy Rucinski; additional reporting by David Shepardson Editing by Sriraj Kalluvila and Nick Zieminski)

Paula Fonseca