United Airlines requested pilots to take unpaid break day subsequent month attributable to extra staffing, which the airline mentioned is because of Boeing plane delays.
Supply delays have lowered the variety of flying hours United anticipated for its pilots, pushing the airline to supply unpaid go away, a United spokesperson told Bloomberg. The Air Line Pilots Affiliation (ALPA), a union that represents United pilots, mentioned United will supply extra break day by the summer season and doubtlessly into the autumn. United reported in a Feb. 29 SEC filing that it’s contracted to obtain 165 Boeing aircrafts in 2024—however it expects to obtain solely 63 this yr.
“Due to recent changes to our Boeing deliveries, the remaining 2024 forecast block hours for United have been significantly reduced,” the United chapter of the ALPA wrote in a Friday memo to its members, CNBC reported. “While the delivery issues surround our 787 and 737 fleets, the impact will affect other fleets as well.”
The ALPA didn’t reply to Fortune’s requests for remark.
What’s occurring to all of United’s pilots?
Asking pilots to take unpaid break day is one step additional than United’s choice in March to slow its hiring of pilots and pause new-hire lessons by June on account of Boeing supply delays. As of March 7, United employed 450 pilots and had plans to rent 800 by the top of April. For context, the airline employed 2,350 pilots in all of 2023.
United’s working plans have been additional stymied by the Federal Aviation Administration’s increased scrutiny of the airline after a sequence of 10 security mishaps over simply two weeks in early and mid March. The probe could restrict new routes through the busy summer season months and has already prevented United from selling and approving pilots to fly completely different plane fashions.
United CEO Scott Kirby mentioned the repeated security incidents have been unrelated and welcomed elevated FAA consideration. He has spoken repeatedly about his frustrations with Boeing’s supply issues, that are set to proceed because the 737 Max 10 mannequin is yet to be certified. United requested Boeing to as an alternative give attention to barely smaller Max 9 manufacturing for the airline.
“Boeing is not going to be able to meet their contractual deliveries on at least many of those airplanes,” Kirby mentioned in a January call with investors. “And let’s leave it at that.”
Final month, United was closing in on a deal to accumulate three dozen Airbus A321neo jets. Of the 26 Airbus A321neo aircrafts United is contractually obligated to obtain in 2024, it expects to obtain 25 this yr, in keeping with the Feb. 29 SEC submitting.
Years of mounting delays
Airbus has stored its promise to ship its contracted aircrafts, however it has been regardless of continued supply-chain delays which have plagued your complete airplane manufacturing business.
Engines and different jet parts are in tight provide, however delays lasting months or years are the modern norm within the business, Air Lease government chairman Steven Udvar-Hazy mentioned in February.
Airline producers throughout the board are nonetheless navigating pandemic-era supply-chain delays—generally two to 5 occasions so long as earlier than 2020 due to extended labor shortages and provider bottlenecks attributable to ongoing warfare within the Ukraine.
Airbus has felt the brunt of those supply-chain points due to increased demand for its jets, however Boeing has had the alternative destiny. After a door plug blew off a Boeing 737 Max 9 on a January Alaska Airways flight—together with a series of safety mishaps on Boeing planes—the FAA barred the producer from expanding production of its 737 Max past 38 planes per 30 days. Boeing had mentioned in earlier earnings experiences that it hoped to supply as much as 50 jets of the mannequin month-to-month by 2025.
Boeing CFO Brian West mentioned prospects have been supportive of the producer’s elevated security checks following the incidents, although they’ve exacerbated supply delays.
“We are in regular, very transparent communications [with customers] and they know precisely where we stand and the progress that we’re making,” West mentioned at a Bank of America convention on March 20. “We, at the same time, have to understand what their needs are as they think about their flight schedules and their passengers.”
The affect of Boeing’s mishaps and ensuing FAA crackdown have reverberated throughout the business. Southwest and Alaska Air each mentioned their flying plans could also be in danger due to Boeing’s delays. Ryanair CEO Michael O’Leary piled on to Boeing’s distress, telling Reuters in February that the low cost airline expects to have seven to 10 fewer Boeing aircraft deliveries by the summer season. The delays might drive Ryanair to hike ticket fares by as much as 10%.
“The [Boeing] management team in Seattle don’t appear to have a grip on the situation at the moment,” O’Leary mentioned.
