United Airlines UAL has received the green signal from Federal Aviation Administration (“FAA”) to return its 52 Boeing 777s powered with Pratt & Whitney engines to service. The jets have been grounded since last February after a Honolulu-bound flight suffered an engine failure and made an emergency landing at the Denver International Airport.
United Airlines had initially expected some of the aircraft to return to service in April. However, the airline informed last month that the Boeing 777 jets, powered by Pratt & Whitney 4000 engines, were “being removed from the schedule through May 12 and removed from international/Hawaii routes through May 25.”
Per a CNBC report, at a Bank of America industry conference, United Airlines’ chief commercial officer, Andrew Nocella, said, “Late last night, the FAA issued the final paperwork on our Pratt & Whitney-powered triple sevens.”
United Airlines Holdings Inc Price
United Airlines Holdings Inc price | United Airlines Holdings Inc Quote
In a statement, the FAA said, “The FAA approved the service bulletins that will be used to make the necessary changes outlined in the Airworthiness Directives to the Boeing 777-200 with Pratt & Whitney PW4000 engines.”
The planes comprise about 10% of United Airlines’ capacity. Due to the non-availability of these planes, the carrier has had to cut back its flight schedules.
The return of the jets comes at a time when air-travel demand is steadily improving. An expected increase in capacity following the aircraft’s return to service is likely to boost United Airlines’ top line.
Zacks Rank & Key Picks
United Airlines carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Transportation sector are as follows:
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Shares of Golar LNG have rallied more than 100% in a year.
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Shares of Star Bulk have gained more than 68% in a year.
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