United Airlines unveils record jet order in bet on travel recovery

NEW YORK: United Airlines announced the largest order in its history on Tuesday, unveiling major purchases from Boeing and Airbus in a significant bet on a travel industry's recovery from Covid-19. The US carrier plans to acquire 270 new planes consisting of 200 Boeing aircraft and 70 Airbus jets, in an order valued at $35.4 billion based on the listed price of the jets, although airlines often end up paying much less than the list price.

United executives described the order as a landmark moment symbolizing the radically improved outlook for travel due to access to coronavirus vaccines.

Still, United and other major airlines are expected to report another quarterly loss for the April-June period when they release their earnings reports in July, due to the continued drag from the crisis that has devastated travel revenue for more than a year.

United's business travel volumes are still down 60 percent, with international travel off even more, United Chief Executive Scott Kirby said.

"We're not back to 100 percent," Kirby said during a conference call with reporters in which he outlined how the company leaders had strategized early in the pandemic.

"Because we accurately mapped out the trajectory of the crisis in March and April of last year, it's really allowed us to be prepared and make the right short- and long-term decisions," he said.

During the hour-long conference call, company officials were not asked about the so-called Delta virus variant - which is spreading rapidly in many parts of the world leading to some renewed restrictions - but the announcement illustrates broad confidence in the industry's prospects even as the pandemic evolves.

Investors initially cheered the announcement, lifting United shares 0.6 percent to $52.81 in early trading, but prices later dipped. Boeing gained but Airbus lost ground.