Why Did United Airlines Just Order 25 More Boeing 737 MAX Jets?
Over the past year, United Airlines Holdings (NASDAQ: UAL) has consistently been one of the most "realistic" U.S. airlines with respect to the COVID-19 pandemic. Management quickly recognized that the pandemic could have an unprecedented impact on demand. Moreover, the company has been cautious in its short-term planning, expecting a slow and volatile recovery. United will hold capacity at very low levels at least through the first quarter of 2021.
Nevertheless, when United filed its 2020 annual report last week, it revealed that it recently ordered 25 more 737 MAX jets from Boeing (NYSE: BA). Let's look at why the airline may have placed this order and what it means for United Airlines -- and for Boeing.
United Airlines is one of Boeing's biggest customers for the 737 MAX. As of the end of January, it had 158 unfilled orders for the troubled jet. However, during the depths of the pandemic last year, United deferred a huge swath of 737 MAX deliveries.
Source Fool.com
