United Airlines is preparing to purchase huge planes

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The American airline giant United Airlines


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is close to placing an order for more than 100 wide-body jets as it considers bids for both the Boeing 787 Dreamliner and the Airbus A350. If realized, it will be one of the largest long-range aircraft orders ever in history. Just a little over a year ago, the company made a purchase of 270 narrow-body aircraft.

The Chicago-based airline has 128 wide-body Boeing jets that are at least 20 years old and naturally maintenance costs increase as the planes age. United has just seven Dreamliners left on order after repeatedly rejecting a deal for 45 Airbus A350s.

The potential new order carries high risk for Boeing and Airbus. Demand for expensive wide-body planes collapsed during the coronavirus pandemic and is slowly recovering as restrictions are lifted and transatlantic flights resume.

The potential United deal would be among the largest acquisitions of wide-body jets, and winning it could give Boeing a much-needed boost over its European rival. For Airbus, this will be a significant support for the A350 in the US market, as the company aims to increase sales of this model in the US.

However, the European Airbus has an advantage over the American Boeing in that it may – if United decides to purchase the A-350 planes from it – give a benefit in the form of accelerating the delivery rate of narrow-body planes that the company has ordered such as the A-320 and the A-321neo United would be very happy about that.

United Airlines will report its financial statements on Tuesday the day after tomorrow. The last quarter was its first profitable quarter since the start of the corona, even though fuel prices reached record highs. Last month, the company raised its revenue growth forecast for the third quarter, citing strong demand at the end of the summer. United is “probably the airline best positioned to take advantage of the next phase of the revenue recovery,” wrote Jefferies analyst Sheila Khaioglu. The company is expected to report earnings per share of $2.22 ($745 million net income) on sales of 12,718 billion dollars which reflect a growth of 64%.

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