Why Did United Buy Planes During COVID?

Scott Kirby says United bought planes during COVID because the experts were wrong and every other long-haul airline was shrinking. Those experts said travel demand would stay down by 50% forever. Kirby thought the drop would be deep and long, and that demand would come back. Every other global long-haul airline permanently retired part of its widebody fleet. United placed what he calls the biggest aircraft order in history.

The order was 200 widebodies, then several hundred narrowbodies. Those airplanes list for about $400 million, and United gets a big discount off that list price. Kirby told the board that, with everyone else shrinking, United did not have to be right. It only had to be not totally wrong. United was the only airline in the world ordering, so it got better pricing, and Boeing could point to that order when it talked to other customers.

The jets last about 30 years, so the fleet will ride through several downturns. The move was to buy while other airlines were cutting, not while orders were at a peak.