Boeing Blues? United Airlines May Ditch 737 Max For Airbus A321Neo Jets Due To Delays
Portfolio Pulse from Benzinga Neuro
United Airlines is in early discussions with Airbus to acquire more A321neo jets as a response to delays in the delivery of Boeing's 737 Max 10. United CEO Scott Kirby initiated the talks due to concerns over the Max 10's certification, exacerbated by a recent mid-air emergency with an Alaska Airlines 737 Max 9. United has not canceled its order for 277 Max 10 jets but has removed them from internal plans. Boeing faces challenges with the 737 Max 9, which was temporarily grounded due to a door plug incident, and ongoing quality issues that could impact the U.S. economy.
January 29, 2024 | 8:19 am
News sentiment analysis
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NEGATIVE IMPACT
Boeing faces potential loss of business from United Airlines due to delays and safety concerns with the 737 Max 10, which could impact future orders and company reputation.
The potential shift of United Airlines to Airbus due to Boeing's delays and safety concerns could negatively impact Boeing's future orders and stock price. The recent safety incident adds to the negative sentiment, leading to a likely short-term negative impact.
CONFIDENCE 75
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
United Airlines is exploring the purchase of Airbus A321neo jets to offset Boeing 737 Max 10 delays, indicating a potential shift in fleet strategy.
While United Airlines is considering acquiring more Airbus jets, there is no definitive action yet, and they have not canceled their Boeing order. The news indicates potential changes in fleet composition but is not a final decision, hence a neutral score.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Airbus may benefit from increased orders for A321neo jets if United Airlines decides to shift away from Boeing's 737 Max 10 due to delivery delays.
Airbus stands to gain from Boeing's challenges as United Airlines considers increasing its A321neo orders. This could lead to a positive short-term impact on Airbus's stock as it may reflect potential growth in sales.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 70