It was thought that the pandemic would have disastrous long-term effects on aircraft demand. We already saw that many carriers canceled or postponed orders since last spring. However, United Airlines is proving doubters wrong by finalizing the details of a deal worth up to $33 billion for 270 new narrowbodies.
A shift in momentum
Just today, United took delivery of its first Boeing 737 MAX 8 aircraft, and there are 40 more on order. The airline also placed an order for 100 MAX 10s. Now, it’s understood that hundreds of more single-aisle jets could be joining the Chicago-based carrier.
Reuters reports that the order could include up to 200 737 MAXs and 70 Airbus A321neos. This deal would give United a massive arsenal of the most efficient modern narrowbody types on the market. Moreover, the agreement would surpass Southwest Airlines’ recent order for a whopping 100 MAX aircraft and also be the biggest order across the industry since the rise of the global health crisis.
The 737 MAX has been the center of attention for the last two years following the type’s universal grounding amid two fatal accidents. It has since returned to the skies, providing hope for operators looking to deploy the jet across their networks. United already holds both 737 and A320 family aircraft and is looking to carry on putting its eggs in more than one basket with this diverse potential order.
Back on track
At list prices, the A321neo costs $129.5 million per unit, while the MAX 8 goes for $121.6 million. Nonetheless, airlines don’t necessarily pay list prices. Therefore, the overall order may check-in at a more attractive rate for United.
The news of this order comes as United announces that it expects to report a positive adjusted pre-tax income for next month. Shares of the…