United Airlines places largest ever order for 270 new planes

United Airlines is to significantly expand its fleet after placing the largest combined order in its history, the US carrier said on Tuesday.

The airline has ordered 200 Boeing 737 Max and 70 Airbus A321 neo planes, which it said was both the largest order in its history and the biggest by an individual carrier in the last decade. It also expects to create around 25,000 jobs as a result of the order by 2026.

United Airlines has not disclosed financial terms. Reuters estimated the value at around $30bn, although such large deals are normally heavily discounted.

Under an expansion plan dubbed United Next, the Chicago-based airline also intends to retrofit all its remaining mainline, narrow-body fleet, to include more first-class and premium economy seats, along with improvements in in-seat entertainment and overhead storage.

United Airlines expects United Next to increase the total number of available seats per domestic departure by nearly 30%, and premium seats by 75% by 2026 compared to 2019.

Airlines have been one of the sectors worst hit by the pandemic, as borders were closed and both domestic and international travel ground to a halt. Last April, United posted a fifth consecutive loss and in 2020, it reported an annual net loss of $7.1bn - against net income a year previously of $3.0bn - after total operating revenues plunged 65% to $15.4bn.

However, while various restrictions remain in place, carriers are increasingly hopeful for a strong summer, as vaccination programmes continue and travel picks up. Demand in the US has been particular strong so far, industry data has shown.

Scott Kirby, chief executive, said: "Our United Next vision will revolutionise the experience of flying United as we accelerate our business to meet a resurgence in air travel.

"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."

United Airlines currently has around 800 planes in its fleet. When combined with existing orders, it expects to add 500 planes, including 40 in 2022, 138 in 2023 and up to 350 in 2024. Around 300 will replace smaller jets.