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United Airlines orders 110 Airbus, Boeing jets in a bet on travel demand

A United Airlines Airbus A319-100 jet takes off from Washington National Airport in Washington, U.S., August 9, 2017. REUTERS/Joshua Roberts/File Photo Acquire Licensing Rights
Oct 3 (Reuters) – United Airlines (UAL.O) on Tuesday announced an order for 110 aircraft from Boeing (BA.N) and Airbus (AIR.PA) for delivery beginning in 2028 as it seeks to expand its international network.
The Chicago-based carrier said its order is also intended to mitigate the persistent supply-chain logjam that has delayed aircraft deliveries as well as infrastructure bottlenecks that have forced it to cut its flights.
United will convert previous options and purchase rights into firm orders for 50 Boeing 787-9s for delivery between 2028 through 2031 and 60 Airbus A321neos for delivery between 2028 and 2030, it said, confirming details Reuters first reported earlier on Tuesday.
It has also secured new options for up to 50 more 787s and purchase rights for an additional 40 A321neo aircraft at the end of the decade.
Orders for long-distance widebody jets rebounded to meet international travel demands. Air Canada last month purchased 18 Dreamliners and Air France-KLM ordered 50 Airbus A350s. Since the pandemic, there has also been a rise in demand for narrowbody jets, especially larger models such as the A321, which has dominated the single-aisle market.
Among U.S. airlines, higher-margin international travel is the most important to United, accounting for about 39% of its passenger revenue this year – up from before the pandemic.
United Chief Commercial Officer Andrew Nocella said the company expects a disproportionate part of its growth in the second half of this decade to come from global long-haul flying.

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