Cash for Wings: United Airlines Unlocks Millions in Massive 20-Jet Deal with SMBC
- Sky Vault Aviation
- Dec 12, 2025
- 5 min read
In a strategic financial maneuver designed to bolster liquidity while continuing its aggressive fleet modernization, United Airlines has finalized a major sale-and-leaseback agreement for 20 upcoming Boeing 737 MAX 9 aircraft. The deal, struck with Dublin-based lessor SMBC Aviation Capital, secures the financing for these next-generation narrowbodies scheduled for delivery throughout 2025 and 2026.
This agreement is more than just a transaction; it is a signal. It highlights how major U.S. carriers are navigating the complex post-pandemic economic landscape—balancing the desperate need for new, fuel-efficient metal with the equally pressing need to keep balance sheets healthy.
The Deal: 20 Planes, Zero Upfront Cash Burn
United Airlines and SMBC Aviation Capital announced the agreement yesterday, confirming that the lessor will purchase 20 Boeing 737 MAX 9 jets directly from United’s order book and immediately lease them back to the airline.
While the exact financial terms remain confidential, the list price of a Boeing 737 MAX 9 hovers around $128.9 million, though airlines typically receive significant discounts. This places the total asset value of the deal in the multi-billion-dollar range.
Key Transaction Details:
Aircraft Type: 20 x Boeing 737 MAX 9
Lessor: SMBC Aviation Capital (Sumitomo Mitsui Banking Corporation)
Delivery Window: 2025 through 2026
Structure: Sale-and-Leaseback (SLB)
"We appreciate the thoughtful approach SMBC Aviation Capital brought to structure a transaction that supports our fleet strategy and allows us to deliver even better experiences for our customers," said Michael Leskinen, United’s Chief Financial Officer. "We value our strong, longstanding relationship with SMBC Aviation Capital and their role in our ongoing fleet modernization."
For SMBC, this is a low-risk, high-reward expansion of their portfolio with a top-tier credit tenant. Barry Flannery, Chief Commercial Officer at SMBC Aviation Capital, noted, "These aircraft will play an important role in advancing United’s fleet strategy with the latest fuel-efficient aircraft."
The "Sale-Leaseback" Explained: Why Do Airlines Do This?
To the average passenger, it might seem counterintuitive: Why would United Airlines buy a plane only to sell it immediately and rent it back? Why not just own it?
In the high-stakes world of aviation finance, cash is king. The Sale-and-Leaseback (SLB) model is a favorite tool for CFOs for several critical reasons:
1. Immediate Liquidity (The "Cash Out" Effect) When an airline takes delivery of a new jet, they usually have to pay Boeing the final installment of the purchase price—often tens of millions of dollars per plane. By selling the plane to a lessor like SMBC at delivery, United effectively gets reimbursed for that cost immediately. It turns a capital-intensive asset into instant cash liquidity.
2. Balance Sheet Hygiene Owning 20 airplanes adds billions of dollars of debt or capital expenditure to the balance sheet. Leasing them converts that massive capital cost into a predictable, monthly operating expense (OpEx). This keeps the airline's debt-to-equity ratios looking healthier to Wall Street investors.
3. Fleet Flexibility Owning a plane means you are stuck with it for 20 or 30 years. Leasing typically runs for 10-12 years. If technology jumps forward—say, a hydrogen-electric plane becomes viable in 2035—United can simply return the leased MAX 9s at the end of the contract and upgrade, rather than being burdened with trying to sell old technology in a flooded market.
The Aircraft: The Resilient Boeing 737 MAX 9
The specific aircraft at the center of this deal—the 737 MAX 9—is the workhorse of United’s domestic strategy. Despite the model's turbulent history, including the early 2024 door-plug incident that grounded the type temporarily, the MAX 9 has rebounded to become a pillar of United's "United Next" plan.
Why the MAX 9 Matters to United:
Capacity: It seats up to 179 passengers in United's configuration, bridging the gap between the smaller MAX 8 and the larger Boeing 757s it is replacing.
Efficiency: The MAX 9 offers roughly 15-20% better fuel efficiency than the older 737-900ERs, a massive saving given that fuel remains one of the airline's highest costs.
Passenger Experience: These new deliveries will come equipped with United’s signature interior: seatback screens at every seat, larger overhead bins for carry-ons, and fast Wi-Fi.
United is currently the world’s largest operator of the MAX 9. By securing financing for 20 more, they are doubling down on their commitment to the type, signaling confidence that the manufacturing quality issues at Boeing are being resolved under new regulatory scrutiny.
A Deepening Partnership: United & SMBC
This is not a one-off transaction. The relationship between the Chicago-based carrier and the Dublin-based lessor has been deepening rapidly over the last 24 months.
This deal marks the third major collaboration between the two giants recently:
The Airbus Deal: SMBC previously agreed to lease 20 Airbus A321neo aircraft to United from its own order book.
The MAX 8 Deal: A prior sale-leaseback transaction covered 20 Boeing 737 MAX 8 aircraft.
The Current Deal: 20 Boeing 737 MAX 9s.
In total, this brings the recent collaborative portfolio to 60 brand-new, next-generation narrowbody aircraft. For United, having a reliable partner like SMBC—backed by the immense capital of Japanese banking giants—provides a safety net against market volatility. If interest rates spike or traditional bank loans dry up, knowing they have a lessor partner with deep pockets allows United to keep taking deliveries without pause.
The Industry Context: 2025 is the Year of the Lessor
The aviation industry in 2025 is defined by a shortage of aircraft. Supply chain snarls at both Boeing and Airbus mean that planes are arriving late, and airlines are fighting tooth and nail to get their hands on lift capacity.
In this environment, Lessors are winning. Companies like SMBC, AerCap, and Avolon control a massive percentage of the global order backlog. Airlines that might prefer to own their planes are being forced toward leasing simply to secure delivery slots or financing.
Supply Scarcity: Because new planes are so scarce, their residual value is holding steady. SMBC knows that even if United were to default (highly unlikely), they could take those 20 MAX 9s and lease them to a dozen other desperate airlines within 24 hours. The asset is safe.
Interest Rates: With global interest rates stabilizing but still elevated compared to the near-zero rates of the 2010s, the cost of borrowing cash to buy planes is high. Leasing shifts that interest rate risk partially to the lessor, who often has a lower cost of funds.
What This Means for Travelers
For the passenger sitting in 23A, financial engineering sounds boring—until you realize what it results in.
Newer Planes: This financing ensures United can actually pay for and receive the factory-fresh planes with the "new plane smell," Bluetooth connectivity, and mood lighting.
Reliability: Replacing 25-year-old jets with new MAX 9s reduces mechanical delays.
Route Stability: By securing the fleet, United can confidently schedule flights for the 2026 summer season without fearing they will be short on aircraft.
Conclusion: A Win-Win in Turbulent Skies
United Airlines’ sale-leaseback deal with SMBC is a textbook example of modern airline management. It is a defensive move to preserve cash and an offensive move to guarantee growth.
By locking in the financing for these 20 Boeing 737 MAX 9s now, United has cleared the runway for the next two years of fleet expansion. They get the planes, SMBC gets the assets, and travelers get a modernized cabin experience. As the industry heads into 2026, expect to see more of these "cash for wings" deals as airlines maneuver to stay profitable in a high-cost world.
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