United places huge order with Boeing to replace aging planes

Dec 12, 2022, 1:36 PM | Updated: Dec 13, 2022, 9:33 am
A United Airlines plane at LaGuardia Airport's Terminal B, Tuesday, Nov. 22, 2022, in New York. Tra...

A United Airlines plane at LaGuardia Airport's Terminal B, Tuesday, Nov. 22, 2022, in New York. Travel experts say the ability of many people to work remotely is letting them take off early for Thanksgiving or return home later. Crowds are expected to rival those of 2019, the last Thanksgiving before the pandemic. (AP Photo/Julia Nikhinson)

(AP Photo/Julia Nikhinson)

United Airlines said Tuesday that it ordered 100 new Boeing 787s, a large, twin-aisle jetliner, to replace planes that are nearing retirement age and allow United to expand its international flying.

United also added to its order book for the smaller Boeing 737 Max, which is used on domestic flights.

The companies did not disclose financial terms of the orders. United said it can choose among three sizes of the 787, which carry list prices ranging from $248 million to $338 million per plane, but airlines routinely negotiate deep discounts on aircraft orders.

Moody’s Investors Service estimated the value of the 787 orders at $16 billion after discounts. Other analysts said it could be worth up to $19 billion depending on the mix of 787 versions that United eventually selects.

United is scheduled to begin receiving the 787s in 2024, and it took options on 100 more.

The massive order — United called it the biggest ever by a U.S. airline for twin-aisle or “widebody” planes — is a bold move for an airline that lost money throughout the pandemic until the middle of this year. Executives at United and other airlines are sounding bullish, however, as travel demand has bounced back nearly to 2019 levels and ticket prices have surged higher than a year ago because of fewer flights.

The order also is welcome news at Boeing. The U.S. aircraft maker is still struggling to recover from two deadly Max crashes, production flaws that halted deliveries of the 787 for nearly two years, and setbacks in other programs including a contract to build two new Air Force One presidential planes. It has lost more than $21 billion since 2019.

United picked the 787 to replace its Boeing 767 jets and some of its Boeing 777s that are nearing 30 years in age — some of the 767s have already hit that milestone — and far less fuel-efficient.

The Chicago-based airline could have chosen the A350, built by Boeing’s European rival, Airbus. United already has 45 A350s on order but doesn’t expect to start receiving them until 2030.

United CEO Scott Kirby told reporters United went with Boeing because it already flies the 787 and did not want to add a new plane to the fleet now, when it is busy hiring pilots and trying to expand its route network.

At the same time, Boeing converted options on 44 Max jets to firm orders, and added a new order for 56 Maxes. Those 100 planes are scheduled to show up between 2024 and 2028 and will replace aging jets and allow for modest growth in United’s domestic flying.

Last year, United ordered 200 Max jets and 70 single-aisle Airbus jets in a deal the airline said at the time was the biggest order in its history.

United executives said they might use cash flow to pay for all these planes, or they might finance them. With the latest orders, United now expects capital spending to rise to $9 billion next year and $11 billion in 2024.

Shares of United Airlines Holdings Inc. fell more than 6% in afternoon trading. United’s closest rivals also dropped but not as sharply. Boeing Co. fell less than 1%.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

3 kids taken in Nebraska carjacking found with frostbite

GRAND ISLAND, Neb. (AP) — Three young children were being treated for frostbite in Nebraska Sunday after police said two suspects stole an SUV while they were inside. Around 3 a.m. Sunday, when temperatures were around 0 degrees, a man reported that his 2012 Chevrolet Traverse had been stolen with his three children inside, said […]
18 hours ago
Associated Press

Julie Otsuka, Ed Yong win Carnegie Medals for Excellence

NEW YORK (AP) — Novelist Julie Otsuka has strong memories of libraries from her childhood California — the bike rides with her best friend to the local branch; the soft, firm sound of librarians closing books; the shopping bags she and her friend would fill with science fiction and other stories. “It seemed like I […]
18 hours ago
FILE - Netherland's Prime Minister Mark Rutte, left, speaks with U.S. President Joe Biden during a ...
Associated Press

Source: Dutch, Japanese join US limits on chip tech to China

WASHINGTON (AP) — Japan and the Netherlands have agreed to a deal with the U.S. to restrict China’s access to materials used to make advanced computer chips, a person familiar with the agreement told The Associated Press on Sunday. The person declined to be identified because the deal hasn’t yet been formally announced. It’s unclear […]
18 hours ago
Associated Press

Missouri mom convicted of killing her infant twins

ST. LOUIS (AP) — A Missouri mother who reported that her infant twins were stillborn has been convicted of manslaughter. Maya Caston, 28, was convicted Friday of second-degree involuntary manslaughter and two counts of child endangerment. The St. Louis Post-Dispatch reports that jury found her guilty of lesser charges instead of convicting her of second-degree […]
18 hours ago
Associated Press

Trucks crash into commuters in Nigeria’s south; 20 dead

ABUJA, Nigeria (AP) — Two separate road crashes involving trucks in southern Nigeria left 20 people dead including children, authorities said Sunday, with many of the victims burned beyond recognition. In Nigeria’s commercial hub of Lagos, a truck carrying a heavy container landed on a commercial bus on a busy bridge in the Ojuelegba area […]
2 days ago
Associated Press

Kansas City police find body in man’s car after towing it

KANSAS CITY, Mo. (AP) — Family members and a forensic expert are questioning why Kansas City police didn’t find a man’s body in the cargo area of his own SUV until after they towed it to a Missouri police station earlier this month. Adam “A.J.” Blackstock Jr.’s death is being investigated as a homicide, according […]
2 days ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
United places huge order with Boeing to replace aging planes