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Why United Airlines' CEO Put Rolls-Royce In The 'Doghouse' & What It Means For 45 Airbus A350s

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Why United Airlines' CEO Put Rolls-Royce In The 'Doghouse' & What It Means For 45 Airbus A350s
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United Airlines CEO Scott Kirby has put Rolls-Royce “in the doghouse,” escalating a contract dispute that could disrupt the carrier’s long-delayed Airbus A350 plans for a fleet of 45 aircraft. United’s regulatory disclosures say the airline signed agreements with Rolls-Royce in 2010 for engine purchases and related widebody maintenance. In 2017, it paid a $175 million commitment payment. The dispute escalated in December 2025, when United claimed Rolls-Royce breached the deal and demanded repayment, while Rolls-Royce terminated the agreements and said United owed breaches. United says the termination was wrongful. Airbus has no alternate engine supplier for the A350, so United cannot simply swap powerplants, and the A350 has been removed from near-term delivery expectations through the end of the current planning horizon.

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