SMBC Aviation Capital
an aircraft lessor, has confirmed that it will lease 20 Airbus A321neo aircraft to United Airlines, which was already announced as part of the airline’s fleet plan in April.

Previously disclosed transaction

The Dublin, Ireland-based aircraft lessor announced the multiple definitive lease agreements on September 19, stating that United Airlines would lease 20 A321neo
aircraft.

Airbus
should deliver the aircraft starting in 2026, which will come from SMBC Aviation Capital’s order book. United Airlines had already disclosed that it would add the A321neos in April.

shutterstock_2423645539 United A321neo Las Vegas

Photo: Robin Guess | Shutterstock

Then, the carrier said that it had signed letters of intent (LoI) with “major aircraft leasing companies” for 35 A321neo aircraft that would be powered by the CFM International LEAP-1A engines, which it expected to receive in 2026 and 2027.

The disclosure was part of its Q1 earnings results, with United Airlines
ending the three-month period with a net loss of $124 million, compared to the $194 million net loss during the same quarter in 2023.

However, its Q2 report read that the carrier had signed definitive and preliminary agreements for 40 A321neo aircraft with deliveries in 2026 and 2027.

“In July 2024, the Company entered into definitive agreements to lease 35 of the 40 Airbus A321neo aircraft, which will commence between 2026 and 2027.”

Proof of a strong relationship

Michael Leskinen, the chief financial officer (CFO) of United Airlines, said that the relationship between SMBC Aviation Capital and the airline has never been stronger and that the leases of the A321neo aircraft were a part of its efforts to optimize its balance sheet and increase the carrier’s return on capital.

“We thank SMBC for its continued support and partnership.”

Barry Flannery, the chief commercial officer (CCO) of SMBC Aviation Capital, added that these more fuel-efficient aircraft will allow United Airlines to grow its fleet further and that the lessor was delighted to support the airline’s growth strategy.

“These agreements highlight the importance of our long-standing relationship with United and we look forward to many more years of successful partnership.”

Lukas Souza United Airlines Airbus A321neo

Photo: Lukas Souza | Simple Flying

SMBC Aviation Capital disclosed that recently, the two companies completed a sale-and-leaseback transaction for 20 Boeing 737 MAX 8 aircraft without revealing the sum of the transaction.

As of June 30, United Airlines had 118 firm commitments for the A321neo, in comparison to 123 firm commitments as of March 31.

Between March and June, Airbus delivered six A321neo aircraft, with the following registrations, per ch-aviation data:

Aircraft registration

Delivery date

Aircraft owner

N14506

March 12

United Airlines

N14511

April 5

United Airlines

N24513

May 16

United Airlines

N14509

May 21

United Airlines

N14512

June 7

United Airlines

N24516

June 22

United Airlines

In July, United Airlines took delivery of three A321neo aircraft, registered as N24514 (July 19), N14515 (July 23), and N14518 (July 31), all of which are owned by the airline.

As a result, the airline now has 15 A321neo aircraft, three of which were currently inactive, ch-aviation data indicated.

Replacing the Boeing 737 MAX 10

United Airlines first ordered A321neo aircraft in December 2019, when it purchased 50 A321XLR, a derivative of the A321neo, aircraft, adding another 70 in June 2021 and a further 60 A321neos in October 2023.

As a result, its total A321neo, including the A321XLR, backlog consisted of 180 aircraft of the type, with Airbus’ orders and deliveries filings showing that the manufacturer has delivered 15 A321neos so far.

United Airlines Airbus A321neo taking off

Photo: Robin Guess | Shutterstock

Nevertheless, United Airlines plans to lease more A321neos came as Boeing has continued to struggle in its certification effort of the 737 MAX 10, which, in terms of its capacity, is similar to the A321neo.

In January, Reuters, citing people familiar with the matter, reported that Scott Kirby, the chief executive officer (CEO) of United Airlines, flew to Toulouse, France, where Airbus is based, to discuss a potential order as an alternative to the 737 MAX 10.

The reported trip came just a few weeks after the Alaska Airlines flight AS1282 door plug blowout on a Boeing 737 MAX 9, which has kick-started another crisis for Boeing, which now includes a labor strike by its mechanics and engineers in Washington, the United States.

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