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The new order adds to a firm order of 100 Boeing 787 Dreamliners made last December. The delivery of the new planes is set to commence in 2028 and continue through to 2031. This move has been acknowledged by Steven Udvar-Hazy of Air Lease (NYSE:AL) Corp. as crucial in the current airline industry climate.
In addition to dealing with the increased demand for travel, United’s strategy also involves replacing older aircraft and expanding capacity at constrained airports such as Newark and San Francisco. This approach mirrors strategies adopted by other major airlines like American Airlines (NASDAQ:AAL) and Delta Air Lines (NYSE:DAL).
To cater to the growing demand for premium seats, United is also revamping its Polaris (NYSE:PII) business class with new amenities. As part of this expansion, United is implementing upgauging – operating larger aircraft – anticipating over 145 seats per North American departure by 2027.
The acquisition of these additional aircraft forms part of United’s broader strategy to expand its international service while managing the challenges posed by supply chain disruptions. The move underscores the airline’s commitment to strengthening its fleet in response to the changing dynamics of the aviation industry.
According to InvestingPro data, Boeing (BA) has a market cap of 113.96B USD and Airbus (EADSY (OTC:EADSY)) stands at 102.86B USD. The revenue growth for Boeing in the last quarter was 21.18% while Airbus saw a 17.76% increase. Despite the challenges, Boeing’s gross profit margin stood at 9.11% and Airbus at 16.99%.
InvestingPro Tips indicate that Boeing is a prominent player in the Aerospace & Defense industry but has faced some setbacks recently. The stock has fared poorly over the last month and is currently in oversold territory. Meanwhile, Airbus is also a prominent player in the industry, holding more cash than debt on its balance sheet and yielding a high return on invested capital.
These insights and more are part of the comprehensive analysis provided by the InvestingPro product. For more detailed metrics and tips on these companies, readers can visit InvestingPro BA and InvestingPro EADSY.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
