United Airlines thrives while Boeing faces hurdles in 2024

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United Airlines thrives while Boeing faces hurdles in 2024

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United Airlines | Simple Flying

By Sky Industry News

Feb 4, 2025

The year 2024 was marked by contrasting outcomes for United Airlines and Boeing. Despite both companies facing challenges, their paths diverged significantly by the end of the year.

United Airlines experienced a series of safety incidents, including issues with its aircraft tires and an incident involving a Boeing 737 MAX at Houston George Bush Intercontinental Airport. These events led to increased scrutiny from the Federal Aviation Administration (FAA), which monitored United's operations closely.

Boeing also faced difficulties in 2024. The Alaska Airlines midair blowout incident resulted in the FAA grounding all 737 MAX 9 variants and highlighting production quality concerns. The company underwent management changes, with David Calhoun stepping down as CEO and Kelly Ortberg taking over amid a labor dispute that saw machinists strike for nearly two months.

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These challenges affected United's network planning due to delays in Boeing's aircraft deliveries. Despite this, United managed to double its share prices by year's end, making $3.5 billion despite early losses linked to Boeing's issues.

United's success can be attributed to strategic decisions such as maintaining robust domestic and international schedules, adding flights where demand was high, and seeking alternatives like leasing Airbus A321neo aircraft when Boeing faced delivery setbacks. "We are in the market for A321s," said United CEO Scott Kirby regarding potential fleet expansions.

Operational efficiency also played a role; United set records for passenger numbers and on-time performance while announcing a $1.5 billion share buyback plan. "We intend this buyback to be the beginning of a consistent return of capital," stated CFO Michael Leskinen.

In contrast, Boeing aims for recovery in 2025, focusing on improving production processes after financial hits last year. The company's credit ratings suffered due to operational struggles but hopes remain high under new leadership that significant changes will lead to profitability similar to what United achieved.