United Airlines Hits Brakes On Hiring This Year Due To Boeing Woes: Report
Portfolio Pulse from Nabaparna Bhattacharya
United Airlines (UAL) is scaling back its hiring plans for 2023 due to delays in airplane deliveries from Boeing (BA). The airline initially aimed to hire 13,000 to 15,000 new employees but has revised this target to around 10,000. Despite this, United Airlines still expects to hire a significant number of new employees in 2024. Boeing's production issues have led to a 25% reduction in jet deliveries, impacting United's operational growth and hiring plans. United Airlines reiterated its financial outlook for 2024, expecting adjusted EPS of $3.75 to $4.25 for Q2 and $9 to $11 for the full year.
June 04, 2024 | 5:46 pm
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Boeing's delays in airplane deliveries have forced United Airlines to scale back its hiring plans for 2023. Boeing's production estimates have been slashed by 25%, leading to only 66 jets being delivered this year. This has a direct impact on United Airlines' operational growth and hiring plans.
Boeing's production delays are causing operational issues for its customers, including United Airlines. This could lead to short-term negative sentiment around Boeing's stock as it struggles to meet delivery targets.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
United Airlines is reducing its hiring plans for 2023 due to delays in airplane deliveries from Boeing. The airline's revised hiring target is around 10,000 new employees, down from the initial 13,000 to 15,000. Despite this, United Airlines expects significant hiring in 2024 and has reiterated its strong financial outlook for 2024.
The reduction in hiring plans is a direct result of Boeing's delivery delays, which impacts United Airlines' operational growth. This could lead to short-term negative sentiment around UAL's stock. However, the reiterated strong financial outlook for 2024 may mitigate some of the negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100