United Airlines cuts 45 Airbus A350s from its fleet plan following a $175 million Rolls-Royce dispute. The carrier pivots to Boeing to streamline operations.

UNITED DROPS A350 ORDER AMID CONTRACT CLASH

United Airlines officially scrapped plans to add 45 Airbus A350 aircraft to its long-haul fleet today. This decision follows a contentious $175 million financial disagreement with engine manufacturer Rolls-Royce. Executives confirmed the permanent removal of these jets in an SEC filing released late Friday. The move signals a massive, abrupt shift in the carrier’s international widebody strategy.

THE 175 MILLION DOLLAR ENGINE DISPUTE

The conflict centers on Trent XWB engine maintenance contracts and specific credit valuations. Sources indicate Rolls-Royce refused United’s hardline demand for $175 million in retroactive concessions. This deadlock made the projected operating economics of the A350 fleet untenable. Shareholders now question why high-stakes negotiations stalled after years of order deferrals.

IMPACT ON AIRBUS AND ROLLS-ROYCE

Losing a flagship US customer strikes a severe blow to Rolls-Royce’s North American market share. The manufacturer relies heavily on A350 placements to drive long-term service revenue. Investors reacted negatively to the news of the contract failure during after-hours trading. This dispute highlights growing tension between airlines and engine suppliers over rising aftermarket costs.

BOEING DREAMLINER CONSOLIDATION

United will likely consolidate its widebody future around the existing Boeing 787 Dreamliner family. Simplified pilot training and a common parts inventory drive this streamlined approach. Relying solely on Boeing reduces operational complexity significantly for the Chicago-based airline. Industry analysts predict a follow-up order for additional 787-9 or 787-10 jets soon.

United faces immediate scrutiny regarding its heavy reliance on a single airframe manufacturer. Supply chain delays at Boeing could threaten future capacity expansion plans without Airbus alternatives. Competitors like Delta Air Lines maintain mixed fleets to hedge against such risks. The market now awaits United’s updated capital expenditure guidance for the fiscal year.