Bad United Airlines News

Frustrating. I think that's really all you could probably say for United Airlines feelings on the Boeing 737-10, an upcoming variant of the 737 MAX, and things don't really appear to be getting any easier. Updates surrounding this aircraft are, remember, off the back of Alaska Airlines confirming that they didn't believe they would acquire their first 737-10 until 2026 at the earliest, but it's bad news for United. They're expecting it to be even longer of a wait. We're in fresh reporting, the continued uncertainty surrounding the delivery time frame of this next generation, and remember, I'll reiterate, the largest MAX variant in the family remains all the more unclear, and they're now preparing for a worst case scenario, and as part of their own fresh estimates, they believe they probably won't welcome the 737-10 unit until 2027, even worse, potentially 2028. Given the complexities in the certification of this plane that was meant to service years ago, but doesn't seem any closer to actually getting formal FAA approval, the US carrier's frustrations with the MAX have been evident in recent times with adjustments required to the fleet makeup and a heavier reliance on the approved jets within the series. More often than not, quarterly earnings calls are a fantastic way to learn, yes, about an airline's quarterly performance in terms of finances, but you'll also get glimpses into how the airline is perceiving future aircraft deliveries to unfold, its fleet, and so much more, and for me, that is obviously utterly fascinating, especially for a company that is in such a massive renewal process at the moment bringing in so many of your next generation aircraft, but encountering so many struggles in doing so. Not all the struggles are down to, say, solely delivery delays. Some are, unfortunately, because the plane can't be delivered, period. While the 737 MAX remains a in the global aircraft fleet and has been for some time, onlookers would be sometimes forgiven for forgetting that there are still two unapproved aircraft types in the broader series. To be honest, if you're like me and you love aviation, I even sometimes forget. They really often just slip the mind. It's been so long without them that you almost have to tap yourself over the head and just remind yourself there are still two more variants to come. Worse still, these two aircraft variants do still have substantial commitments and are obviously going to therefore serve a purpose with the airlines and purchase them. That is not to say that if the plane only had five orders that it wouldn't serve a purpose, but ultimately, say, 300, 500 orders is a lot more than five. So unlike the A330-800 or the 777-8, which have lacked a lot of interest, let alone firm orders, these two unreleased variants are in demand. In early 2024, United Airlines even reconsidered its order for the 737-10 on a public scale, albeit remembering that this decision and these comments were based on a door blowout incident that uncovered many struggles that were present in the Boeing operation at the time. However, Scott Kirby, the airline CEO, was not really unwarranted for this feeling. Analysts believe that the incident at the time was really the straw that broke the camel's back as the company's frustrations in the program were increased tenfold. For many reasons, the 737-10 is meant to be a massive part of United's fleet makeup in the future. And in an industry where no manufacturer proceeded with what many airlines required in a middle-of-the-market airliner, the options are scarce. United has therefore been forced to look towards Airbus and their A321neo model to try and answer some of the questions they've needed to solve because of Boeing's inability to get planes certified that has prevented United from really excelling. Like aircraft groundings, one of the biggest challenges is the uncertainty. Not so much what's actually happening, but rather the uncertainty, in this case, in acquisition efforts. Boeing has published timeline after timeline, but on each occasion it has not been able to meet this, and we've now reached a point where a timeline doesn't really exist. Due to timelines not being met, it affects forecasting, renewal, growth, and overall deliveries for United, who are looking to expand and face a lot of competition. Time will tell on when the 737-10 will actually be delivered, but many are now expecting it to be quite a few more years before we see it airborne. Frustrating, but it will be a wonderful day when it actually is, and it'll feel like we've come to an end of a very, very long journey. Let me know your thoughts. Thanks for watching, and I'll see you tomorrow for your next industry recap.