* United plans to receive over 250 aircraft by April 2028
* United focuses on premium seating with new Airbus
models
* Premium travelers seen as resilient to fare increases
By Rajesh Kumar Singh
CHICAGO, March 24 (Reuters) - United Airlines on
Tuesday unveiled a broad aircraft and cabin overhaul centered on
higher-end seating, pressing ahead with its long-term growth
plan days after warning that oil could stay above $100 a barrel
through 2027 and outlining plans to trim some flights in
response.
The Chicago-based carrier said it expects to receive more
than 250 aircraft by April 2028, including 68 Airbus
A321neo Coastliner and A321XLR jets with lie-flat Polaris
business-class seats and larger premium cabins.
The move comes after Chief Executive Scott Kirby said last week
that United would trim about five percentage points of planned
capacity this year as it prepares for oil to remain above $100 a
barrel through 2027 and rise as high as $175.
At those levels, United's annual fuel bill would rise by
about $11 billion, more than twice the profit it earned in its
best year, he said.
Still, Kirby said United was better positioned than in past
cycles to absorb shocks, protect margins by cutting less
profitable flying and keep investing for the long term.
"We've positioned ourselves to get through these storms that
are inevitable, stay focused on the long term and keep investing
for the long term," he said on a media call.
PREMIUM PUSH
At the center of the announcement are two new Airbus models
that will feature lie-flat Polaris seats and Premium Plus
cabins.
One, called the Coastliner, will fly exclusively between Los
Angeles and San Francisco and Newark/New York. The other, the
A321XLR, will replace Boeing 757s on some existing
international routes starting this summer and later open new
destinations in Europe and South America.
United said the 757s now flying many of those routes
typically have about 16 business-class seats. The A321XLR will
have 32 premium seats. The Coastliner will have 20 Polaris seats
and 12 Premium Plus seats.
INDUSTRY BET
Big U.S. carriers have increasingly built their business around
premium travelers, corporate accounts and loyalty-program
members since the pandemic, betting those customers are slower
to pull back when fares rise.
Andrew Nocella, United's chief commercial officer, said the
U.S. economy and air travel demand remained strong, allowing
United to raise fares without materially hurting bookings.
"I can tell you that the environment is strong," Nocella
said. "We've been able to pass through many of the price
increases necessary to cover what is a significantly quick and
rapid increase in the price of oil and jet fuel."
(Reporting by Rajesh Kumar Singh; Editing by Lincoln Feast.)