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United to pause pilot hiring, citing Boeing’s delivery delays

INBV News by INBV News
March 7, 2024
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United to pause pilot hiring, citing Boeing’s delivery delays
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Leslie Josephs | CNBC

United Airlines will pause pilot hiring this spring due to Boeing delivery delays, the newest effect of the plane maker’s problems on certainly one of its biggest customers.

Latest hire classes can be paused in May and June and can likely resume in July, Marc Champion, vice chairman of flight operations, and Kirk Limacher, vice chairman of flight ops planning and development, told staff Thursday in a memo, which was seen by CNBC.

“We desired to let you recognize that United will slow the pace of pilot hires this yr because of continued latest aircraft certification and manufacturing delays at Boeing,” they wrote.

Boeing declined to comment.

Boeing has been scuffling with a number of production flaws like incorrectly drilled holes on the fuselage and the fallout from a door plug that blew out of a virtually latest Boeing Max 9 operated by Alaska Airlines on Jan. 5, which prompted a temporary grounding of the aircraft type earlier this winter. Bolts gave the impression to be missing on the plane when it left Boeing’s factory, a preliminary investigation found.

United was contracted to receive 43 Boeing 737 Max 8 and 34 Max 9 models this yr, but expects to get 37 and 19 of them, respectively, based on an organization filing. It also had contracted deliveries of 80 Max 10s in 2024, the biggest model within the bestselling Max family, but expects none of them this yr. The plane hasn’t yet been certified yet by the Federal Aviation Administration and is years behind schedule.

United’s CEO, Scott Kirby, in January said the carrier is making a fleet plan without the Max 10.

“As you recognize, United has a whole bunch of latest planes on order and while we remain on a path to be the fastest growing airline within the industry, we just won’t grow as fast as we thought we might in 2024 because of continued delays at Boeing,” Champion and Limacher said Thursday. “For instance, we had contractual deliveries for 80 MAX 10s this yr alone – but those aircraft aren’t even certified yet and it’s unattainable to know when they may arrive.”

Read more CNBC airline news

Other U.S. carriers have slowed pilot growth this yr following a hiring spree up to now few years, after encouraging staff to take early retirement when demand slumped within the pandemic.

A shortage of aviators together with slow aircraft deliveries from each Boeing and Airbus as they faced supply chain constraints have helped drive up airfares.

American Airlines hired about 2,000 pilots last yr and expects so as to add around 1,300 this yr, CEO Robert Isom said at an investor presentation in Latest York on Monday.

“That is slowing down a bit bit, but … now we have a substantial variety of retirements,” he said. “We can be hiring for the foreseeable future at levels like that.”

Delta Air Lines is halving its pilot hiring this yr after bringing on a record 2,400 in 2023, and Southwest Airlines will pause pilot hiring after a new-hire class this month, a spokesman said. Some carriers like Spirit Airlines have stopped pilot hiring altogether to slow their growth and reduce costs.

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