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United Airlines (UAL) Announces Huge Boeing & Airbus Jet Order

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United Airlines Holdings (UAL - Free Report) announced the largest aircraft order in its history as the carrier ramps up its operations to cater to the recovery in air-travel demand. The airline has decided to purchase 200 Boeing 737 MAX and 70 Airbus A321neo jets while replacing the older, smaller mainline and regional jets with larger aircraft.

United Airlines expects the newer aircraft, featuring more premium seats with larger overhead bins and seatback entertainment screens, to improve fuel efficiency by 11% as well as reduce carbon emission per seat by 17-20% compared with the older ones. Through this order for bigger jets with more premium seating, the airline expects to better position itself to cater to the anticipated increase in business travel demand, which has been improving lately despite significantly lagging leisure demand.

The new aircraft order, consisting of 50 Boeing 737 MAX 8s and 150 737 MAX 10s, is expected to increase the carrier’s domestic capacity by 30%. With air-travel demand continuing to recover from the coronavirus-induced slump in 2020, the company stated that the new order is expected to create approximately 25,000 unionized jobs.


Combined with United Airlines’ existing order book, it is expected that the airline will have 500 new narrow-body aircraft in its fleet in the next few years. Among these aircraft, 40 are expected to be introduced in 2022, 138 in 2023, and as many as 350 in 2024 and beyond.

Zacks Rank & Key Picks

United Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Covenant Logistics Group (CVLG - Free Report) . While C.H. Robinson carries a Zacks Rank #2 (Buy), Expeditors and Covenant Logistics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of C.H. Robinson, Expeditors and Covenant Logistics have rallied more than 19%, 65% and 44% in a year’s time, respectively.

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