Airbus A350 900 fuselage close up
[UPDATE 1: From ‘sources familiar with the matter’, we learned the A350 order is still on.]
[UPDATE 2: Rolls-Royce James Banks, SVP and Head of External Communications: “We’re aware of the issue and are confident in our position. We have complied with our obligations under a series of agreements that stretch back to 2010. Due to the ongoing legal proceedings, we are unable to comment further at this time. United Airlines is a valued customer. We look forward to resolving this historic issue and strengthening our strategic partnership in the future.”
United Airlines has effectively removed the Airbus A350-900 from its fleet, disclosing a legal dispute with Rolls-Royce, the type’s sole engine supplier.
As first reported by The Airline Observer, United Airlines no longer plans to take delivery of the 45 A350-900s, an aircraft it first ordered in 2009, switched to the A350-1000, added more, and then converted them back into the A350-900s in 2017.
At the time, when its former Chief Financial Officer (CFO), Andrew Levy, spoke at the Cowen and Company Global Transportation Conference, he confirmed that the airline not only wanted the A350-900 but also 10 more, bringing its total order book to 45.
However, United Airlines deferred the deliveries of the A350-900 from 2022 to 2027.
Now, the airline is in a legal dispute with Rolls-Royce. In its latest annual report filed with the United States Securities and Exchange Commission (SEC), United Airlines disclosed that, following an initial agreement with the engine maker in 2010 “for engine purchases and related maintenance services for certain widebody aircraft,” in 2017, it paid $175 million to Rolls-Royce.
“In December 2025, following a breach by Rolls-Royce, [United Airlines] issued a demand for payment representing the commitment payment plus contractual escalation.”
Rolls-Royce did not make that payment, the airline continued, and “terminated the referenced agreements with [United Airlines] and asserted that [United Airlines] breached the agreements.”
The carrier has “taken steps to recover the amounts it believes Rolls-Royce owes,” as well as other damages, which the airline is entitled to, the SEC filing read.
“[United Airlines] is also considering further implications of this dispute with respect to other parties,” it continued, possibly hinting that the dispute with Rolls-Royce could affect its A350-900 order.
At the same time, on December 23, 2025, Airbus and United Airlines finalized amending the A350-900 purchase agreement, according to the SEC filing. Unfortunately, all of the key details are confidential.
The airline’s 2024 annual report stated that it had no plans to take delivery of the A350-900s in 2026, 2027, or after 2027, while the 2026 annual report stated that the A350-900s would be delivered sometime after 2026.
United Airlines will need to decide on its fleet, especially as its Boeing 777-200s, including the 777-200ER, are aging. Some airframes are over 30 years old, yet, in an investor update issued on January 20, the airline plans no retirements of the 96 777-200, 777-200ER, and 777-300ERs it has in 2026.
During the year, it plans to take delivery of 16 787s.
Boeing’s order and deliveries page showed that the carrier has unfilled orders for 140 787-9 and 787-10 aircraft, split between 84 787-9s and 55 787-10s.
This news follows our report yesterday about Air Canada ordering the A350.
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