Dividends and United Airlines confirms record jet order with Boeing, Airbus as it pursues domestic growth

On Independence Day weekend more than 2 million people flew everyday which is a record and an wonderful indication the economy is returning to more normal. When a person flies their expectation is to fly the newest planes and large companies such as United must continually buy or lease new planes. The new planes also tend to be similar to new autos – they should cost less to maintain, achieve greater mileage per mile flown and be flexible to meet the demands of the public. All this is good for the airlines, but to make money they need the business class to resume their flying schedules and gaining points. In most organizations there is a time delay to using the points and the airlines make money from the delay.

In an article by Tracy Rucinski and Eric M Johnson of Reuters, United Airlines made an order for 270 planes worth more than $30 billion made by Boeing and Airbus. The planes go into domestic operations between 2022 and 2026.

United which is America’s 3rd largest airline will be able to boost the number of seats across its domestic network by 30% and get better use out of hubs with the fleet shakeup.

Boeing makes the planes in Washington State and South Carolina while some of the Airbus planes will be made in Mobile, Alabama. For Boeing the order includes the new Max 737.

Linking to dividend paying stocks, profitable companies can look to the future to modernize to take advantage of opportunities in the marketplace. They have the leisure to continually trying to find better efficiencies to help their customers in the short and long run, when they do their customers tend to stay loyal and be repeat customers.

There are more questions than answers, till the next time – to raising questions.

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