United CEO casts doubt on 737 Max 10 order after Boeing’s recent problems

Key Points

United Airlines Considering Fleet Plans Without Boeing 737 Max 10:

• • United Airlines is reevaluating its fleet plans and considering the exclusion of Boeing’s 737 Max 10 from its future aircraft acquisitions.
  • The decision is influenced by a series of delays and the recent grounding of a smaller variant, the 737 Max 9, due to a manufacturing problem where a door plug blew out during an Alaska Airlines flight, leading to FAA grounding.

Significant Delay and Frustration with Boeing:

• • United CEO Scott Kirby expressed frustration with Boeing, stating that the 737 Max 10 is already “best case” about five years delayed.
  • The most recent manufacturing issue on a 737 Max 9 flight in which a door plug blew out contributed to the ongoing grounding. United has 79 of the 737 Max 9 aircraft, the highest among carriers, and anticipates a first-quarter loss due to the grounding.

Delta Air Lines Expresses Confidence, Boeing Taking Comprehensive Action:

• • Last week, Delta Air Lines CEO Ed Bastian expressed confidence in proceeding with his airline’s order of Boeing Max 10s, despite United’s reconsideration.
  • Boeing has not commented specifically on the Max 10, but Stan Deal, the company’s CEO of commercial airplanes, mentioned taking comprehensive action to bring 737 Max 9 airplanes safely back to service and improve quality and delivery performance. Boeing is scheduled to report quarterly results on January 31.