Another blockbuster summer awaits, United Airlines said on Wednesday, despite cautioning headwinds will force changes to the carrier's ambitious growth strategy for the coming years.
01.04.2024 - 17:01 / skift.com / Scott Kirby / United Airlines / Southwest Airlines / Bob Jordan / Dave Calhoun / Meghna Maharishi
United Airlines is offering pilots unpaid time off in May due to delivery delays with Boeing aircraft, the airline confirmed Monday.
The carrier said its forecasted block hours in 2024 had been reduced. As a result, pilots now have the option to take a “voluntary program” in May to reduce any excess staffing.
CNBC was the first to report that the airline is asking pilots to take unpaid time off, citing a note United’s pilots’ union sent to staff on Friday.
“Due to recent changes to our Boeing deliveries, the remaining 2024 forecast block hours for United have been significantly reduced,” the note said. “While the delivery issues surround our 787 and 737 fleets, the impact will affect other fleets as well.”
Delays with certain Boeing aircraft, specifically the smallest and largest variants of the 737 Max, are causing airlines to rethink their growth plans. Multiple airline CEOs have said that they expect to trim flight schedules and slow hiring because of the delays.
United initially expected to receive 80 Max 10s in 2024, but now the carrier anticipates those orders won’t be fulfilled until at least next year due to certification delays.
Southwest Airlines also said it would cut capacity for 2024 due to the delays. In total, Southwest expected Boeing to deliver 79 planes, including the Max 7, but the smallest Max variant hasn’t been certified. Instead, Southwest is receiving 46 Max 8s in 2024, down from 58.
Alaska Airlines also said its capacity outlook was in flux for 2024.
The delays have hit hiring for pilots and flight attendants the hardest. These groups were at the center of a post-pandemic labor shortage, but now airlines are pausing hiring as they wait on Boeing orders.
United said it would halt pilot hiring in May and June, with CEO Scott Kirby saying the airline had told Boeing to stop building the Max 10 and to instead build the Max 9 to fulfill its order.
“It’s impossible to say when the Max 10 is going to get certified,” Kirby said at the JPMorgan conference on March 12.
Meanwhile, Southwest CEO Bob Jordan said the carrier was looking to reduce costs as much as possible. While Southwest initially paused pilot hiring after March to bring hiring levels either at or below the turnover rate, it has now extended that pause to flight attendants.
Southwest originally planned to slow flight attendant hiring later in the year, but delivery delays and certification issues hastened that process.
“Given the news on Boeing aircraft delivery delays … managing our plan just is not enough,” Jordan said at the March 12 conference. “Going forward, we are actively and urgently focused on further cost reductions.”
Boeing CEO Dave Calhoun announced last week he would step down at the end of the
Another blockbuster summer awaits, United Airlines said on Wednesday, despite cautioning headwinds will force changes to the carrier's ambitious growth strategy for the coming years.
Senators are calling for a broader investigation into Boeing’s safety and manufacturing practices after a whistleblower alleged issues with the structural integrity of the 787 Dreamliner and 777.
United Airlines would have turned a profit in the first quarter of 2024 had it not been for a door plug blowing off an Alaska Airlines jet mid-flight in January.
United Airlines reported it took a $200 million hit during the first-quarter from the Max 9 grounding, according to a regulatory filing posted Tuesday.
The American Airlines pilots’ union said it has noticed a “significant spike” in safety and maintenance-related incidents.
United Airlines said it was canceling its service to Tel Aviv on Saturday, as reports came out that Iran was launching drones toward Israel.
Around a dozen United Airlines flight attendants picketed outside LaGuardia Airport on Thursday, demanding better pay and working conditions.
An engineer at Boeing claimed the plane maker dismissed repeated concerns about the quality control of the 787 Dreamliner and 777, some of the most used widebodies in the airline industry.
United Airlines has postponed a pair of inaugural flights, citing delays by the Federal Aviation Administration (FAA) following a series of recent safety incidents.
Yet another Boeing aircraft has encountered mechanical issues while flying passengers, this time on a Southwest Airlines flight from Denver to Houston in the morning of April 7.
You can expect to pay more for plane tickets this summer, as airline capacity struggles to keep up with demand.
Departing Boeing CEO Dave Calhoun received around $32.7 million in compensation for 2023, according to an annual proxy statement filed Friday.