United Airlines to Pause Pilot Hiring Due to Boeing's Aircraft Delivery Delays

United Airlines announced that it will pause pilot hiring this spring due to aircraft deliveries from Boeing. This decision comes as a result of the plane maker's ongoing issues with one of its biggest customers.

Temporary Pause in New Hire Classes

According to the memo seen by CNBC, new hire classes will be paused in May and June. However, it is anticipated that hiring will resume in July. In the memo, Marc Champion, vice president of flight operations, and Kirk Limacher, vice president of flight ops planning and development, explained the reason behind the pause. They cited "continued new aircraft certification and manufacturing delays at Boeing" for the decision to slow the pace of pilot hires this year.

Boeing's Struggles

Boeing has been facing production flaws, including issues such as incorrectly drilled holes on the fuselage and the fallout from a door plug incident involving a Boeing Max 9 operated by Alaska Airlines on Jan. 5. These challenges have led to delays in aircraft deliveries and certification processes.

Impacts on United's Deliveries

United Airlines, which was expecting deliveries of 43 Boeing 737 Max 8 and 34 Max 9 models this year, now anticipates receiving 37 and 19 of them, respectively. Additionally, the airline had contracted deliveries of 80 Max 10s in 2024, but it does not foresee receiving any this year. The delays in aircraft certification have contributed to this situation, with the Max 10 model still pending certification by the Federal Aviation Administration and significantly behind schedule.

CEO's Statement

Scott Kirby, United's CEO, previously acknowledged the impact of these delays on the carrier's fleet plan and growth trajectory, stating that the company won't grow as fast as initially projected in 2024 due to the continued delays at Boeing. The contractual deliveries for 80 MAX 10s this year are currently uncertain, given the uncertified status of the aircraft.

Industry-Wide Impact

Other U.S. carriers have also felt the effects of pilot shortages and aircraft delivery delays. American Airlines hired approximately 2,000 pilots last year and expects to add around 1,300 this year. Delta Air Lines is halving its pilot hiring this year after significant recruitment in 2023, and Southwest Airlines will pause pilot hiring following a new-hire class this month. These adjustments reflect the broader impact of the industry's challenges on pilot recruitment and growth plans.

Outlook for the Future

Despite these temporary pauses and adjustments, airlines like American Airlines expect to continue hiring for the foreseeable future, with levels similar to previous years. The industry continues to navigate the complexities of staffing and fleet expansion amid ongoing challenges related to aircraft deliveries and pilot availability.