United Airlines to lease 40 Airbus A321neos, expanding fleet by 2027
During the third quarter of 2024, United Airlines has finalized agreements with aircraft leasing companies to lease 40 Airbus A321neo aircraft.
These aircraft, scheduled for delivery in 2026 and 2027, will be added to United’s growing fleet as part of its modernization strategy, aimed at improving fuel efficiency and expanding capacity.
As of September 30, 2024, United had entered into leases for mainline and regional aircraft, airport facilities, and office space with total rental obligations of approximately $4.0 billion. None of these leases had commenced by the end of the third quarter, though, with the relevant dates set between 2024 and 2027. The lease terms span up to 12 years, aligning with the airline’s long-term fleet and infrastructure planning.
The 40 leased A321neos will bolster United’s firm commitments for 115 A321neo aircraft, which Airbus has yet to deliver. United expects to receive 14 of the narrowbody aircraft in the fourth quarter of 2024, followed by 23 in 2025 and the remaining 78 beyond that date.
United’s choice to lease more Airbus narrowbody aircraft comes at a time when both Airbus and Boeing are facing major delivery delays. Boeing is particularly affected by a machinists’ strike that has halted production of its 737, 767, and 777 models since September 12, 2024.
On April 14, 2024, United Airlines reached confidential agreements with Boeing regarding compensation for financial damages incurred in the first quarter of 2024. These damages were due to the Federal Aviation Administration’s grounding of the Boeing 737 MAX 9 aircraft and certification delays with the Boeing 737 MAX 10.
Boeing has agreed to provide compensation in the form of credit memos, which United can use for future purchases from Boeing. The airline is accounting for this compensation by reducing the cost basis of its previously delivered Boeing 737 MAX 9 aircraft and future deliveries of both the 737 MAX 9 and 737 MAX 10. This adjustment will also lower the airline’s future depreciation expenses associated with these aircraft. The post United Airlines to lease 40 Airbus A321neos, expanding fleet by 2027 appeared first on AeroTime.
During the third quarter of 2024, United Airlines has finalized agreements with aircraft leasing companies to lease 40…
The post United Airlines to lease 40 Airbus A321neos, expanding fleet by 2027 appeared first on AeroTime.
