United Airlines does not expect Boeing 737 MAX to fly this summer
United Airlines said that it does not expect its 737 MAXes to fly again until at least the fall. That new guidance came in its quarterly investor call Wednesday.
"At this time we are assessing the schedule, but we do not anticipate flying the MAX this summer," Andrew Nocella, United's chief commercial officer, said Wednesday during the carrier's fourth-quarter earnings call.
United currently has the jet scheduled to return on June 4, but that now seems increasingly unlikely given those comments and new guidance out from Boeing this week. On Tuesday, the manufacturer began notifying its suppliers and airline customers that the MAX would likely remain grounded until at least June or July.
Sign up for the free daily TPG newsletter for more airline news.
For United, the ongoing MAX grounding has been a drag in an otherwise successful and profitable year.
The airline discussed earnings for both the fourth quarter and full-year 2019 on Wednesday's call, noting that it flew more revenue passengers in 2019 than in any other year in the company's history.
But even that growth has been tempered by the MAX.
The best-selling Boeing narrow-body has been grounded since March 2019, following two accidents that together killed 346 people.
Related: The 10 longest (and 10 shortest) United Airlines flights
United has a relatively small number of MAXes in its fleet, but executives said on the call that the airline's inability to utilize those planes has slowed its strategy of growing its mid-continent hubs in Chicago, Denver and Houston. More broadly, executives said the grounding of the MAX has hampered United's ability to use optimally sized planes to serve markets across its network.
If the MAX fleet was not grounded, United would have some 737 MAX-10s flying now for example, which would have replaced smaller aircraft.
"We look forward to resuming our mid-continent growth plan designed to maximize connectivity once the MAX is flying again," Nocella said, before adding: "Even without the MAX, we're making progress in smaller communities with the addition of the Bombardier CRJ550 regional jet.
Aside from the MAX issues, United's management said 2019 was a solid year for the airline and they expressed optimism for the company's 2020 prospects.
One solid area for United in its latest quarterly update was revenue from its premium products. Delta saw similar results in its earnings results last week.
Passengers can expect to see more of those improvements in the coming year.
Nocella said United is on track "to finish most of our of planned Polaris seating installation and Polaris Clubs" in 2020.
United unveiled its new Polaris business-class in 2016, and has been rolling it out across its fleet since. He said during the call that he expects it to be on all of the carrier's Boeing 777s and Boeing 767-300s by the end of the year.
Related: The ultimate guide to United Polaris
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.