United Airlines sees Boeing 787 as new long-haul 'workhorse,' orders 7 more Dreamliners
United Airlines is making some necessary changes to its long-haul fleet as people continue to avoid unnecessary travel -- especially internationally -- amid the coronavirus pandemic.
The Chicago-based carrier is relying on its efficient Boeing 787 fleet to fly its pared back long-haul schedule for the "foreseeable future," United senior vice president of flight operations Bryan Quigley told pilots in an internal memo on May 2 that was viewed by TPG.
In other words, the Dreamliner is United's new long-haul "workhorse," as Quigley put it.
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This is a significant shift for United whose international fleet has long depended on the Boeing 777. The launch operator of the 777 in 1995, the airline has 96 of the wide-body jets today, a fleet plan dated April 9 shows. It flies nearly half as many 787s, with 12 -8s, 28 -9s and 12 -10s in its fleet at the beginning of April.
However, the 777 is both larger and less efficient than the 787. Those are both major liabilities in a COVID-19 operating environment where few people are traveling and cost savings are paramount.
“Our ability to weather this storm will be measured by how quickly we cut costs and preserve cash," said United chief financial officer Gerry Laderman during a first quarter earnings call on May 1.
Related: United sees positive uptick in flight searches, but only for travel next year
More Dreamliners
In the first quarter, United firmed options for seven Dreamliners in something of a testament to the long-term importance of the 787 to its wide-body fleet, a quarterly financial update released Monday shows. The jets, all larger 787-10s, will be delivered in 2021.
The airline ordered the jets before the COVID-19 crisis kicked into high gear for airlines in early March, TPG understands. Laderman said during the call that it would be "financially impractical" to reschedule the deliveries at this point.
United configures its 787-10s with 318 seats: 44 Polaris business class, 21 Premium Plus, 54 Economy Plus and 199 economy. Its 787-9s, which it just began reconfiguring with Polaris seats, have up to 257 seats: 48 Polaris, 21 Premium Plus, 39 Economy Plus and 149 economy.
United is due to take delivery of eight more 787-9s this year -- after taking two in April -- and eight -10s in 2021. The carrier will operate 71 Dreamliners by the end of next year.
United has yet to decide whether it will use the new 787s to replace older jets in its wide-body fleets, executives said. The carrier is waiting for a firmer view of the recovery from the pandemic to finalize a fleet plan.
Related: United slashes Boeing 737 MAX deliveries amid coronavirus downturn
Flying changes
All of the international long-haul routes that United will operate in May will be flown with 787s. The -9s will go to Asia and South America, and the -10s to Europe, according to Cirium schedules.
The only exceptions are a Boeing 737 flying between Guam (GUM) and Tokyo Narita (NRT), and a Boeing 767-300ER flying between Houston Intercontinental (IAH) and São Paulo Guarulhos (GRU) for just the first three days of May, Cirium shows.
Quigley outlined United's initial international flying plans as it comes back from the crisis. 767 pilots will be consolidated to Chicago O'Hare (ORD), Houston and Newark (EWR), and 777 pilots to Newark and San Francisco (SFO). 787 bases will remain open in all of the airline's hubs except Los Angeles (LAX).
Related: United may change route map post-coronavirus, says no hub is ‘sacred’
The closure of United's 787 pilot base in Los Angeles raises questions over the future of its Southern California hub. Already considered among its weakest hubs -- Cranky Concierge founder Brett Snyder has called it the “most up for grabs” on United's map -- all of the airline's long-haul routes from LAX were flown with Dreamliners prior to the pandemic, according to Cirium.
“Everything is on the table in terms of what we look like,” United president -- and soon CEO -- Scott Kirby said of the carrier's potential post-COVID restructuring on May 1. “While we don’t have plans to close hubs, when you say everything is on the table we mean everything — there are no sacred cows.”
United is currently planning for capacity cuts of as much as 90% through June. Any service resumptions are dependent on an uptick in the number of people flying.
Related: How will airlines rebuild their route maps after the coronavirus?
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 $6,000 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.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.