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UAL Orders 300 GEnx Engines From GE Aerospace to Power Boeing 787s
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Key Takeaways
United Airlines ordered 300 GEnx engines to power new Boeing 787 Dreamliners.
The deal lifts GE Aerospace's GEnx backlog to nearly 1,800 engines plus spares.
UAL's fleet commonality with GEnx engines aims to cut costs and support global expansion.
United Airlines (UAL - Free Report) strengthened its long-term partnership with GE Aerospace (GE - Free Report) by selecting 300 GEnx engines to power its new Boeing 787 Dreamliners. This order will expand UAL’s 787 fleet to more than 200 GEnx-powered aircraft and make it the largest GEnx operator globally. The deal enhances GE Aerospace’s revenue visibility, as it will generate both engine sales and high-margin aftermarket services over the decades.
GE Aerospace designed the GEnx engine with advanced materials and technologies to deliver high durability, efficiency and reliability. The engine has achieved a 99.98% dispatch reliability rate and accumulated more than 70 million flight hours, proving its strong operational performance. With this order, GE Aerospace increased its firm GEnx backlog to nearly 1,800 engines plus spares, strengthening its production pipeline and long-term cash flow outlook.
UAL reinforced its reliance on GE Aerospace by expanding its use of GEnx engines across its growing Dreamliner fleet. The airline already operates several GE and CFM engine models, and greater fleet commonality will improve maintenance efficiency, reduce operational complexity and lower lifecycle costs. This strategy will help United Airlines optimize its performance and support its international expansion plans.
This agreement reflects strong global demand for fuel-efficient widebody aircraft and next-generation propulsion systems. GE Aerospace will expand its installed base, increase recurring service revenues and strengthen its competitive position in the widebody engine market, supporting long-term growth and margin expansion.
Share Price Performance
Shares of UAL have gained 18.2% over the past three months, outperforming the 17% return of the Zacks Airline industry.
Investors interested in the industry may consider Allegiant (ALGT - Free Report) and Southwest Airlines (LUV - Free Report) .
ALGT sports a Zacks Rank #1 at present.
Allegiant has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, and met the mark once, delivering an average beat of 23.6%.
Southwest Airlines currently flaunts a Zacks Rank #1.
LUV has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters, and missed the mark once, delivering an average beat of 253.9%.
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UAL Orders 300 GEnx Engines From GE Aerospace to Power Boeing 787s
Key Takeaways
United Airlines (UAL - Free Report) strengthened its long-term partnership with GE Aerospace (GE - Free Report) by selecting 300 GEnx engines to power its new Boeing 787 Dreamliners. This order will expand UAL’s 787 fleet to more than 200 GEnx-powered aircraft and make it the largest GEnx operator globally. The deal enhances GE Aerospace’s revenue visibility, as it will generate both engine sales and high-margin aftermarket services over the decades.
GE Aerospace designed the GEnx engine with advanced materials and technologies to deliver high durability, efficiency and reliability. The engine has achieved a 99.98% dispatch reliability rate and accumulated more than 70 million flight hours, proving its strong operational performance. With this order, GE Aerospace increased its firm GEnx backlog to nearly 1,800 engines plus spares, strengthening its production pipeline and long-term cash flow outlook.
UAL reinforced its reliance on GE Aerospace by expanding its use of GEnx engines across its growing Dreamliner fleet. The airline already operates several GE and CFM engine models, and greater fleet commonality will improve maintenance efficiency, reduce operational complexity and lower lifecycle costs. This strategy will help United Airlines optimize its performance and support its international expansion plans.
This agreement reflects strong global demand for fuel-efficient widebody aircraft and next-generation propulsion systems. GE Aerospace will expand its installed base, increase recurring service revenues and strengthen its competitive position in the widebody engine market, supporting long-term growth and margin expansion.
Share Price Performance
Shares of UAL have gained 18.2% over the past three months, outperforming the 17% return of the Zacks Airline industry.
Image Source: Zacks Investment Research
UAL’s Zacks Rank
United Airlines currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Better-Ranked Airline Stocks to Consider
Investors interested in the industry may consider Allegiant (ALGT - Free Report) and Southwest Airlines (LUV - Free Report) .
ALGT sports a Zacks Rank #1 at present.
Allegiant has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, and met the mark once, delivering an average beat of 23.6%.
Southwest Airlines currently flaunts a Zacks Rank #1.
LUV has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters, and missed the mark once, delivering an average beat of 253.9%.