United Airlines Bets Big on Travel’s Continued Recovery

United Airlines on Tuesday unveiled that it had made its biggest aircraft order ever—the carrier has committed to adding 270 new narrow-body aircraft on order through 2023.

The order, which is split between Boeing (200 737 Max jets that will make up most of the order) and Airbus (70 A321neo jets), totals about $35 billion. That makes the order not only United’s largest ever order but the biggest order by any airline in more than a decade.

When combined with previous orders, United will now add more than 500 new jets to its fleet starting next year, with 40 expected to come in 2022, 138 in 2023, and as many as 350 in 2024 and beyond, almost one per day that year.

United is calling the order its “United Next” plan, a blueprint for its next five years of operation that it says will have a “transformational” effect on the carrier and its customer experience. The plan will boost its number of available seats per domestic departure by almost 30%, will “significantly” lower its carbon emissions per seat, and will create tens of thousands of jobs by 2026.

That domestic seats boost comes from United replacing many of its smaller, regional jets with higher-capacity jets, including on some of its regional routes such as Chicago to Dallas or Newark to Atlanta. United CEO Scott Kirby, on this week’s earning call, noted that adding larger jets on those routes will allow United to compete for customers who may not like flying on those smaller planes.

“United Next” also includes a new look and feel for United’s onboard experience—100% of its mainline fleet will be upgraded by 2025, retrofitted with all the new features of the new fleet, including seat-back entertainment in every seat, larger overhead bins, WiFi, and a new look with LED lighting in the cabins.

That retrofit is expected to be 66% completed by 2023 and 99% completed by the summer of 2025.

“Our United Next vision will revolutionize the experience of flying United as we accelerate our business to meet a resurgence in air travel,” said United CEO Scott Kirby.

“By adding and upgrading this many aircraft so quickly with our new signature interiors, we’ll combine friendly, helpful service with the best experience in the sky, all across our premier global network. At the same time, this move underscores the critical role United plays in fueling the broader U.S. economy – we expect the addition of these new aircraft will have a significant economic impact on the communities we serve in terms of job creation, traveler spending, and commerce.”