United Airlines Rethinks Fleet Plans Amid Boeing Issues

United Airlines is reconsidering its fleet plans, including the order of Boeing 737 Max 10 aircraft, due to a string of delays and the recent grounding of a smaller model of the plane, according to the airline's CEO, Scott Kirby. The Max 10, which is the largest variant of the 737 Max series, has not yet been certified by the Federal Aviation Administration (FAA).

CEO's frustration over delays

Kirby expressed frustration over the lengthy delays, citing that the Max 10 is already "best case" about five years behind schedule. He also criticized Boeing for the latest manufacturing issue, where a door plug blew out during an Alaska Airlines 737 Max 9 flight on January 5, leading to the grounding of these planes by the FAA.

Financial impact on United Airlines

United Airlines, which currently operates 79 of the 737 Max 9 aircraft, the most among all carriers, anticipates a first-quarter loss due to the ongoing grounding, as announced during its fourth-quarter earnings report on Monday.

Change in strategy

In an interview with CNBC's "Squawk Box" on Tuesday, Kirby stated, "I think the Max 9 grounding is probably the straw that broke the camel's back for us. We're going to at least build a plan that doesn't have the Max 10 in it." This comment marks a significant shift from United's previous strategy.

Shift from previous plans

Previously, in August 2018, Kirby, then President of United Airlines, had revealed cabin plans for the approximately 100 Max 10s ordered by the airline. At that time, the carrier had anticipated flying these aircraft by 2020, intending for them to replace some of its older jets. However, the current challenges have prompted a reassessment of these plans.

Contrasting perspective from Delta Air Lines

On a contrasting note, Delta Air Lines CEO Ed Bastian expressed confidence in proceeding with his airline's order of Boeing Max 10s in a recent interview with CNBC.

Boeing's response

Boeing has not yet provided a comment on United Airlines' reconsideration of the Max 10 order. The company is expected to report its quarterly results on January 31. This decision by United Airlines could have significant implications for the aircraft manufacturer and the aviation industry as a whole.