United Airlines has agreed to purchase and deliver another 25 Boeing 737 MAX aircraft in 2023, the airline said Monday as a sign that the travel industry is expected to recover after the coronavirus.
The deal brings United’s total MAX orders to 188, against jets that were grounded for 20 months after two fatal clashes but were approved by regulators to resume service at the end of last year. Represents a vote of trust.
United also plans to increase delivery of the 40 previously ordered MAX aircraft to 2022 and the other five to 2023, the company said in a securities filing.
The contract arises during a long industry recession during the Covid-19 time limit.
According to government statistics, passenger numbers are still less than 50% year-on-year. This shows a big improvement from the worst days of the pandemic, but carriers are still burning cash.
United Airlines and American Airlines have notified thousands of employees of the possibility of a furlough at the end of March when Congress runs out of federal salary support funding.
United is advocating additional federal funding to retain jobs in Washington, Chief Operating Officer Andrew Nosera said in a note to employees announcing MAX’s orders.
“You need to order the aircraft more than a year before it’s delivered,” Nosera said. “And as the end of the pandemic and the deployment of vaccines continue, today’s fleet announcement positions us to meet the expected demand in 2022 and 2023, giving more opportunities for future employees. Helps pave the way. “”
“Choosing the right investment opportunities at the right time helps us secure that bright future and is a down payment for our future success,” added Nosera.
United shares surged 5.3% to $ 55.44 in early trading and Boeing surged 6.9% to $ 226.48.
United Orders 25 More Boeing 737 MAX Planes In Sign Of Confidence Source link United Orders 25 More Boeing 737 MAX Planes In Sign Of Confidence