United Airlines Holdings Inc (NASDAQ: UAL) is reportedly urging pilots to consider unpaid leave next month due to Boeing Company's (NYSE: BA) delayed aircraft deliveries, as per a note to pilots.
It's another illustration of how Boeing's production issues are impacting airlines' expansion plans, according to a report from CNBC. "Due to recent changes to our Boeing deliveries, the remaining 2024 forecast block hours for United have been significantly reduced," the report quoted the United chapter of the Air Line Pilots Association.
The union anticipates further time-off offers extending into the summer and potentially beyond.
United's expected deliveries from Boeing, outlined in a February filing, were adjusted downwards, citing production and certification delays.
The report further noted CEO Scott Kirby had vocalized concerns over Boeing's production problems, including recent incidents such as a door plug incident on an Alaska Air Group Inc. (NYSE: ALK) flight.
Boeing CEO Dave Calhoun announced his departure amid broader leadership changes within the company.
Price Action: UAL shares are trading higher by 0.46% at $48.10 on the last check Monday.