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United Cancels Airbus A350 Order Over Rolls-Royce Dispute

Bloomberg Markets •
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United Airlines Holdings Inc. has quietly removed the Airbus SE A350 jetliner from its fleet plans for the coming years, according to sources familiar with the matter. The decision comes amid an ongoing legal battle with the aircraft's engine supplier, Rolls-Royce Holdings Plc. The dispute appears to have escalated to the point where United is now reconsidering its long-term aircraft strategy.

The A350, powered by Rolls-Royce Trent XWB engines, had been part of United's fleet expansion plans to modernize its long-haul operations. The legal conflict between the two aviation giants has created significant uncertainty for United's future aircraft procurement. Industry analysts suggest the dispute could have broader implications for Airbus as it seeks to maintain its competitive position against Boeing in the wide-body aircraft market.

This development marks a significant setback for both Airbus and Rolls-Royce, who had been counting on United as a key customer for the A350 program. The cancellation could affect delivery schedules and potentially impact the financial projections for both companies. United's decision to drop the A350 from its fleet plan underscores how supplier disputes can have far-reaching consequences in the highly interconnected aerospace industry.