United Airlines is anticipating a reduction in its aircraft deliveries for the year as a result of delays from Boeing. The airline has adjusted its fleet plan to now expect 61 new narrow-body planes, down from the initially projected 101. CEO Scott Kirby explained that this adjustment reflects the current limitations of the manufacturers.
To make up for the decreased Boeing deliveries, United has announced plans to lease 35 Airbus A321neos in 2026 and 2027. This decision comes as Boeing faces production constraints and heightened federal scrutiny. The airline has also revised its annual capital expenditure estimate from $9 billion to $6.5 billion.
In addition to the challenges from Boeing, United Airlines is undergoing an FAA safety review, leading to delays in the launch of new service routes. Despite these setbacks, the airline reported a net loss of $124 million in the first quarter, with revenue increasing by almost 10%.
Looking ahead, United expects to earn between $3.75 and $4.25 per share in the second quarter, with a full-year forecast of $9 to $11 per share. Following this news, United’s shares rose more than 4% in after-hours trading.
While facing obstacles in its growth plans, United Airlines remains hopeful about its future prospects. Executives will be discussing the latest developments with analysts in an upcoming call. Stay tuned for further updates on this evolving story.
