What Does United’s Historic Jet Order Say About the Recovery?
Photo Caption: United is adding 270 jets, including Boeing 737 Max 8s like this one, over the next five years. United Airlines
Skift Take
United's 270-jet order is a milestone for the airline, but the carrier is playing catch-up with its rivals, Delta and American, which have newer aircraft in their fleets. Still, the order is a bet that the industry will not just bounce back but grow as it emerges from the pandemic.
With its new order for 270 narrowbody jets, United Airlines is signaling its commitment to its mid-continent hubs in Denver, Houston, and Chicago, aiming to increase the number of seats available in those cities by 30 percent as the aircraft are delivered between next year and 2026.
The order, the largest in its history and an open secret in the industry for weeks, will be announced Tuesday by CEO Scott Kirby at Newark airport. The scale of the order clearly signals a renewed bullishness about the prospects for airlines after having suffered through the worst year in their modern history.
Even before the pandemic, United Airlines saw room for growth at three of its mid-continent hubs, but during the crisis, while coastal hubs near business centers like New York, Washington, San Francisco, and Los Angeles languished, the mid-continent hubs proved their strength to the carrier, as leisure demand showed more resilience and r
