United Airlines has reported a fresh complication in the protracted saga surrounding its order for Airbus A350 jets after disclosing a dispute with engine maker Rolls-Royce, adding a new element of uncertainty to a deal that has been repeatedly reshaped and delayed since its inception.
The A350 commitment traces to 2009, predating United’s merger with Continental Airlines. That earlier corporate alignment historically favored Boeing, and the A350 arrangement was subsequently restructured several times as United adjusted its widebody fleet plans. The aircraft continue to appear on United’s accounts as 45 A350s slated for arrival beyond 2027, but the airline provided no specific delivery timetable in a regulatory filing released late Thursday.
United said the current impasse centers on a long-term engine and maintenance contract it signed with Rolls-Royce in 2010. Under that agreement the carrier paid $175 million to the British engine maker in 2017. According to United’s filing, in December of last year Rolls-Royce breached the contract, prompting United to demand return of the $175 million and an additional unspecified amount. Rolls-Royce has rejected the assertion that it violated the agreement.
United described the situation as reciprocal: both companies now assert the other owes money. A Rolls-Royce spokesperson told investors the company has fulfilled its contractual obligations stemming from the arrangements that date to 2010 but declined to provide more detail while legal proceedings are underway. The company also called United a "valued customer", stated it was confident in its position, and expressed a desire to resolve what it characterized as a "historic issue" and to strengthen the partnership.
The dispute is significant because Rolls-Royce is the sole supplier of engines for the Airbus A350. That exclusivity means friction between carrier and engine maker could directly affect whether and when United can place the A350s into service. United continues to list the 45 jets on its books as arriving after 2027; a previous annual filing had indicated deliveries beyond 2026. Beyond those entries, the airline did not provide investors a new expected delivery schedule in the most recent filing.
Industry observers note that major jet transactions commonly involve an intertwined three-party dynamic among the airline, the airframe manufacturer and the engine supplier. United’s filing said it is considering what the Rolls-Royce dispute could mean for other parties involved, a probable reference to Airbus. Airbus declined to comment. The manufacturer nonetheless continues to show the stalled order on its backlog listings, a practice industry sources describe as routine and intended to protect contractual rights until the matter is resolved.
United has historically been a sizable customer and a focal point in competition between Airbus and Boeing. In September 2025, Chief Executive Scott Kirby told Reuters the carrier expected to announce its decision on the A350 order later that year. United has tied a final decision on the aircraft to its long-term widebody replacement strategy, specifically noting the eventual need to replace older Boeing 767 and 777 models.
The repeated postponements of the A350 deliveries have fueled speculation that United could cancel the order outright or convert the commitment into other Airbus types, including additional A321neo-family aircraft that the carrier has acquired in large numbers. United declined to comment beyond what it disclosed in the regulatory filing.
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Summary of the filing and responses:
- United reports a contractual dispute with Rolls-Royce linked to engines and maintenance services for 45 Airbus A350s.
- United says Rolls-Royce breached a 2010 agreement and is seeking return of a $175 million 2017 prepayment plus additional amounts; Rolls-Royce disputes that claim.
- Both companies are asserting the other owes money; legal proceedings limit public comment.
The dispute leaves open key questions about delivery timing for the A350s and about how United will address its long-term widebody replacement needs should the order be delayed further, canceled, or converted to other aircraft models.