(Bloomberg) -- United Airlines Holdings Inc. expanded its order of Boeing Co. 737 Max jets by 25 planes less than a month after resuming flights with the aircraft, which is emerging from a record U.S. grounding.
In addition, deliveries of 40 of the single-aisle jetliners will be sped up to 2022 with another five accelerated to the following year, United said Monday in a regulatory filing. The airline plans to field 94 Max jets by the end of 2023 to help address an expected demand rebound as vaccines become more widely distributed and travelers indulge their pent-up wanderlust.
The additional orders, signed Feb. 26, signal United’s confidence in Boeing’s best-selling plane. U.S. regulators banned the Max from flying for 20 months -- the longest jetliner grounding in the country’s history -- after two deadly crashes killed 346 people. United restarted flights last month, following American Airlines Group Inc., Grupo Aeromexico SAB and Brazil’s Gol Linhas Aereas Inteligentes SA. Alaska Air Group Inc. began flying the Max on Monday.
“With a number of our aircraft nearing the end of their life-cycle and the growth opportunities that we know will exist in the Covid-19 recovery period, this agreement will help us to grow as demand returns and renew our fleet with more environmentally friendly, customer-pleasing aircraft,” Andrew Nocella, United’s chief commercial officer, said in a memo to employees.
The carrier climbed 3.5% to $54.52 at 9:46 a.m. amid a broad rally in U.S. stocks. Boeing advanced 5.2% to $223.06.
United’s deal for more Max jets brings its total order to 188 of the workhorse planes, according to the regulatory filing. Boeing has landed 107 firm Max orders since U.S. regulators lifted the grounding in November, according to the company’s website. United’s Max deal was reported earlier by The New York Times.
©2021 Bloomberg L.P.
RECOMMENDED FOR YOU
POPULAR