Thomas Pallini/Insider.
- Boeing jumped as much as 7% on Monday after United Airlines placed a 25-unit order for its 737 MAX.
- The 737 MAX plane was cleared for commercial use late last year after being grounded for more than a year following multiple crashes.
- United Airlines’ order will likely be seen as a vote of confidence for the future of the 737-MAX.
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Shares of Boeing jumped as much as 7% on Monday after United Airlines placed a 25-unit order for the 737 MAX plane.
The move by United will likely be seen as a vote of confidence for both the 737 MAX after two crashes grounded the plane for nearly two years, and for a return in travel demand once the COVID-19 pandemic subsides.
The 737 MAX was cleared for commercial flights late last year, and United, like many other airliners, is once again betting on the success of the more fuel efficient jet.
In a company memo, United said it would acquire 25 new 737 MAX jets and move up the delivery of 40 previously-ordered jets to 2022, and five previously-ordered jets to 2023. Altogether, United has a total of 188 orders for the 737 MAX, according to a filing made with the SEC on Monday.
United Chief Commercial Officer Andrew Nocella said in the memo that the new 737 MAX order would help the airliner meet demand in the coming years.
"With a number of our aircraft nearing the end of their lifecycle and the growth opportunities that we know will exist in the COVID-19 recovery period, this agreement will help us to grow as demand returns," Nocella said.
Nocella added, "And as the end of the pandemic nears and vaccines continue to roll out, today's fleet announcement helps position us to meet the demand we expect to see in 2022 and 2023 and puts us on a path toward more opportunities for our employees in the future."
Shares of United jumped as much as 5% on Monday amid a broad stock market rally.