United Airlines reported a loss of $200 million in the first quarter of the year, primarily due to ongoing quality issues with Boeing. The grounding of the Boeing 737 Max 9 following an incident on an Alaska Airlines flight had a significant impact on United, which relies on Boeing planes for 80% of its mainline fleet. The airline had 86 of the Max 9 jets, the most out of any airline, and faced additional scrutiny from the FAA due to a series of other incidents involving engine fires and wheel failures.
In addition to the grounding of the jets, United said it would only receive 61 single-aisle jets from Boeing this year, 40 fewer than originally anticipated. This has led the airline to freeze pilot hiring and ask for voluntary unpaid furloughs in response to reduced flight operations. The Boeing 737 Max 10, the latest version of the 737, is not expected to be delivered this year, further impacting United’s fleet plans.
As a result of these challenges, United has converted some of its Max 10 orders to the Max 9 for delivery in 2025 through 2027. The airline has also reached agreements to lease 35 new Airbus A321neos, a competitor to the 737 Max. Deliveries of these Airbus planes are expected in 2026 and 2027. Despite these setbacks, United reported an adjusted loss of $50 million for the quarter, an improvement from the previous year’s loss of $207 million. Revenue increased by nearly 10% to $12.5 million, driven by higher passenger miles flown.
Boeing’s ongoing publicity issues and delays have had a significant impact on United’s operations, leading to uncertainty around future deliveries of aircraft. The FAA’s increased scrutiny of United and other airlines using Boeing planes has heightened concerns about safety and quality within the industry. United CEO Scott Kirby has reassured customers of the airline’s commitment to safety and stated that the company will focus on improving its internal safety measures.
United’s decision to lease Airbus planes reflects a shift in strategy away from Boeing due to the ongoing challenges with the 737 Max. The airline’s willingness to diversify its fleet and explore other options indicates the extent to which Boeing’s issues have affected its operations. Despite these setbacks, United remains focused on improving operational efficiency and maintaining a strong customer base, as evidenced by the increase in passenger miles flown and revenue. It remains to be seen how the airline will navigate future challenges in the ever-evolving aviation industry.
