United Airlines Cuts 2024 Hiring Plans Amid Boeing Aircraft Delivery Delays

United Airlines has announced a significant reduction in its hiring plans for 2024, citing delays in aircraft deliveries from Boeing that are the primary reason. The airline now expects to hire around 10,000 new employees, down from its initial plan of 13,000 to 15,000.

Why this matters: The reduction in hiring plans by United Airlines has significant implications for the airline industry and the broader economy. This could lead to a ripple effect on job markets, travel demand, and overall economic growth.

The decision is a direct consequence of Boeing's ongoing safety crisis, which has forced the planemaker to scale down its total aircraft delivery estimates for 2024 by 25% to 66 jets. This reduction has led to decreased aircraft utilization for United, resulting in overstaffing issues.

Kate Gebo, United's executive vice president of human resources and labor relations, emphasized the link between the airline's hiring efforts and its operational growth. *“Our hiring efforts are directly tied to the orders and the growth of our operation,”* she stated.

United has already added 4,000 new team members since January, including over 800 pilots and 600 flight attendants. However, the delay in aircraft deliveries has forced the airline to pause pilot hiring and offer voluntary unpaid leave to its pilots, though it has since resumed pilot hiring.

In 2023, United hired 16,000 new employees, reflecting a period of rapid growth and expansion. The revised hiring plans for 2024, however, will significantly impact the airline's operations and growth strategy.

Boeing's production issues have been exacerbated by a recent mid-air panel blowout on a new 737 MAX plane operated by Alaska Airlines in January. This incident has led U.S. regulators to curb Boeing's production ceiling, further delaying aircraft deliveries.

Despite these challenges, United Airlines continues to receive a high volume of job applications. The airline has received 260,000 applications this year, including over 40,000 applications for 300 internships.

United's regional hiring plans for 2024 include 2,300 new hires in Chicago, 1,500 in Newark, New Jersey, 1,300 in San Francisco, and 900 in Houston. Most of these new jobs represent growth at the airline, but an undisclosed number will offset attrition, which is typically 5% to 7% in a normal year.

Travel demand remains strong, with the Transportation Security Administration (TSA) reporting a 6% increase in travelers at U.S. airport checkpoints compared to last year. United officials have noted that the extra staffing is needed to keep up with this demand.

The reduction in hiring plans is a significant blow to United Airlines, which was counting on the new aircraft deliveries to support its growth plans. The airline will need to reassess its operational strategy to accommodate the delayed deliveries.

Kate Gebo highlighted the impact of the delivery delays, stating, *“We would have hired another 3,000 to 5,000 people this year if we had received all the Boeing jets we expected.”*

Key Takeaways

• United Airlines reduces 2024 hiring plans from 13,000-15,000 to 10,000 due to Boeing delivery delays.
• Boeing's safety crisis forces 25% reduction in 2024 aircraft deliveries, affecting United's growth plans.
• United has already added 4,000 new team members in 2023, including 800 pilots and 600 flight attendants.
• Travel demand remains strong, with a 6% increase in travelers at US airport checkpoints compared to last year.
• Delayed aircraft deliveries will impact United's operational strategy and growth plans.