United Airlines (NASDAQ:UAL) unveiled Tuesday its largest-ever aircraft order: 270 narrow-body jetliners from Boeing (NYSE:BA) and Airbus as the carrier charts its post-pandemic growth.
The fleet plan is central to United’s goal of capturing more travelers, particularly high-paying ones in major coastal hubs like San Francisco and Newark, New Jersey. The Max 10 and A321neo planes are the largest models in their families and United will use them to grow in those markets, which have capacity constraints, according to the carrier’s chief commercial officer.
It also plans to expand in hubs like Denver and Chicago and have annual systemwide growth of about 4% to 6% in the next few years.
In a wide-ranging growth plan, the airline said it plans to add more roomier seats and seatback entertainment, a departure from a previous strategy.
The airline also announced a hiring spree that it expects to total about 25,000 employees for the new planes, including pilots, flight attendants and mechanics.
The order shows United’s optimism about the recovery in air travel, which so far has been concentrated in domestic leisure flights. United said Monday it expects to post positive, adjusted pretax income next month for the first time since January 2020.
United and other airlines took $54 billion in federal payroll aid in exchange for keeping workers employed. CEO Scott Kirby said the airline’s strategy that kept pilots trained and flying similar planes allowed it to be ready for the demand rebound.
UAL shares moved toward the ground 15 cents to $52.34.
