United Airlines Pilots Asked to Take Unpaid Leave Amid Boeing Delivery Delays

Key Takeaways:

• United Airlines requested pilots to take unpaid leaves of absence due to delays in Boeing jetliner deliveries.
• The carrier’s planned flight hours have been reduced because of the lack of new planes.
• Both United Airlines and Boeing have been facing safety issues recently.

Boeing’s ongoing safety and production challenges resulting in delivery delays are now impacting United Airlines Holdings. The carrier has reached out to its pilots, asking them to consider taking unpaid leaves of absence as a consequence of the delayed deliveries of Boeing aircraft. United Airlines explained that due to the shortage of new planes, the airline won’t be able to operate as many flight hours as initially planned.

In an email to Investopedia, United Airlines disclosed that it is offering voluntary programs for the month of May to reduce excess staffing among its pilots. The airline had previously contracted to receive a total of 77 Boeing 737 MAX 8 and MAX 9 planes this year. However, in a securities filing at the end of February, United revealed that it now anticipates receiving fewer aircraft than originally planned – only 37 MAX 8 and 19 MAX 9 planes.

Boeing, on the other hand, has been grappling with various issues, including a midair incident in January involving an Alaska Airlines flight where a door plug blew off. As a result, Boeing’s CEO Dave Calhoun announced his decision to step down by the end of the year as part of a broader management restructuring following the incident aboard the 737 Max 9 plane.

United Airlines has also faced its own set of safety concerns, prompting the Federal Aviation Administration (FAA) to announce increased oversight of the airline. While ongoing certification processes for Boeing aircraft may continue, future projects could potentially face delays depending on the outcomes of the FAA’s oversight findings.

As a result of these developments, Boeing’s shares fell by 1.5% to $190.01 around 1:50 p.m. ET on Monday, while United Airlines Holdings saw a slight increase of 0.15% to $47.95. Year-to-date performance shows Boeing shares down approximately 22%, while United Airlines stock has risen by 16%.

It is evident that the challenges faced by Boeing are having a ripple effect on its customers, such as United Airlines. The aviation industry continues to navigate through turbulent times, with safety and production issues at the forefront. Both companies are working towards resolving these challenges and ensuring the safety and reliability of their operations moving forward.

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