Expectations for the number of new employees are down by a third as it waits on new planes
Boeing $BA’s ongoing production and delivery delays are continuing to have an effect on the airline industry. Reuters reports that an executive from United Airlines told reporters on Tuesday that its hiring plans for the year have been sharply curtailed as it waits on planes from the manufacturer.
Kate Gebo, the company’s head of human resources and labor relations, reportedly said that United is looking to hire about 10,000 new workers this fiscal year. Previously, there were plans to increase headcount by as many as 15,000. That already represented a step down from 2023, when the company brought on 16,000 people.
This isn’t the first time that United has blamed Boeing for changes to its hiring expectations. In March, the carrier said that it would institute a hiring freeze for pilots due to delays in aircraft delivery from Boeing. United has also said that its fleet is in need of refreshment.
“We have a significant fleet of 777 and 767 that need to retire at some point later this decade,” said Andrew Nocella, United’s chief commercial officer, on an earnings call in October.
Boeing’s capacity has been reduced since a piece of fuselage fell off an Alaska Airlines-operated 737 Max 9 in January. The Federal Aviation Administration said that Boeing’s plans to fix issues related to the plane’s production are decent but not good enough for the FAA to let the company start ramping up its output.
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