United Airlines has filed a new prospectus with the US Securities & Exchange Commission (SEC) for a mixed shelf offering, comprising a new securities issuance, that it may file in the future to use the proceeds to pay down debt, fund a portion of its pension liabilities as well as working capital requirements. The shelf offering is not an offer to sell the securities, but provides the airline with the ability to do so over a three year period.
The prospectus also includes an announcement that the airline may issue an enhanced equipment trust certificate (EETC) offering in order to finance or refinance aircraft.
In the third quarter of 2023, United Airlines took delivery of 18 Boeing 737 MAX aircraft and paid for 14 of those aircraft with cash. The airline expects to take delivery of 20 737 MAX aircraft in the fourth quarter, and has already taken delivery of its first Airbus A321neo, which it will need to finance. Depending on market conditions, United may well be the first airline for a while to tap the EETC market again.