United Orders 19 Used Boeing 737-700s
In its earnings announcement Tuesday evening, United Airlines said that it was ordering 19 used Boeing 737-700s — expanding its -700 fleet by almost 50%. It's the smallest 737 model operated by the airline, at 126 seats versus 166 for the 737-800 model and 179 for the 737-900 and MAX9.
But, the airline made clear, the order has nothing to do with its grounded 737 MAXs.
A United spokesman said that the planes are the latest result of the company's continued opportunistic purchases of used aircraft, consistent with the airline's strategy over the past 18 months.
United operates 14 737 MAX planes, which have been grounded since March. When the airline announced its intention to comply with the Federal Aviation Administration order that barred the MAX from passenger service, it said about 40 flights a day would be affected. (For comparison, United already has 40 737-700s in its fleet, according to the airline.)
The MAX has been grounded worldwide in the wake of two crashes overseas that left 346 people dead. Boeing is working to address software malfunctions suspected of contributing to those disasters, but other variants of the 737 remain unaffected and are mainstays of short- and medium-haul flying.
Further information about United's purchase, including deployment plans for the jets after the airline starts receiving them in December, was not immediately available.
Henry Harteveldt, president of Atmosphere Research, said in an email that while the -700 purchase may be in line with the airline's opportunistic purchasing strategy, it's more surprising that it chose that variant over -800 or -900s.
"I don't believe the -700's operating economics are as good as the larger versions," he said.
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app