United Airlines CEO, Scott Kirby, has voiced his disappointment regarding the ongoing manufacturing issues at Boeing. These problems have resulted in the grounding of numerous United jetliners, prompting the airline to explore alternative options to purchasing a future, larger version of the Boeing 737 Max.
Kirby stressed the need for “real action” from Boeing to restore its previous reputation for quality. These comments follow United’s recent disclosure that it anticipates financial losses in the first quarter of this year due to the grounding of its Boeing 737 Max 9 jets.
Currently, United possesses 79 of these planes, which were grounded by federal regulators over two weeks ago after a panel blew out of an Alaska Airlines Max 9 mid-flight, causing substantial damage. Ongoing investigations are currently examining whether missing or broken bolts contributed to the incident.
While Kirby remains hopeful that the Max 9s will soon be cleared for takeoff, he expressed his disappointment with Boeing’s recurrent manufacturing challenges. In recent years, delivery delays of Max jets and the larger Boeing 787 have hindered United’s plans. Last year alone, United received 24 fewer Boeing aircraft than originally expected.
Notably, despite having a standing order for Max 10 jets, a larger variant of the Max line, United faces delays as both the Max 10 and Max 7 are not yet certified by the Federal Aviation Administration. Consequently, the grounding of the Max 9 jets is expected to further complicate Boeing’s efforts to attain approval for these new models.
United Airlines Considers Alternatives to Delayed Boeing Max 10
United Airlines is reevaluating its plans for the Boeing Max 10 aircraft, as it faces further delays and uncertainties caused by the grounding of the Max 9. According to United Airlines CEO Kirby, the Max 10 is significantly behind schedule and the recent Max 9 grounding has been a breaking point for the company. As a result, United Airlines will develop an alternative strategy that excludes the Max 10 from its future plans.
While Kirby did not reveal specific details about the potential aircraft replacements, he highlighted that Boeing’s European competitor, Airbus, is currently the only other global manufacturer of large planes in this category. However, Kirby acknowledged that United Airlines’ growth may be hindered without the anticipated addition of the Max 10.
In response to the ongoing issues, Stan Deal, CEO of Boeing’s commercial-airplanes division, expressed remorse for the grounding of the Max 9 and stated that the company is implementing necessary changes. Deal emphasized Boeing’s dedication to bringing these airplanes back into service safely and enhancing their overall quality and delivery.
Following this news, shares of United Airlines Holdings Inc. experienced a 6% increase on Tuesday. The company, while anticipating a loss of up to 85 cents per share in the first quarter, estimated earnings of $9 to $11 per share for the entirety of 2024. In contrast, shares of The Boeing Co. saw a minor drop of less than 1%.
United Airlines’ reconsideration of its plans for the Max 10 reflects the turbulence experienced by both the airline and Boeing in recent times. As they strive to navigate the challenges, it remains to be seen how United Airlines will adapt its strategy to maintain growth and ensure passenger satisfaction in an evolving industry landscape.
