United Airlines places major Boeing and Airbus order

United Airlines reported heavy losses earlier this year

The US's third-largest carrier, United Airlines, has agreed a deal to buy 50 new aircraft.

The company said it will buy 25 planes from each of the two major aircraft manufacturers - Boeing and Airbus.

United called the agreement "a significant investment in the company's future", allowing it to cut operating costs.

The investment comes despite recent losses at several major US carriers including United.

The company has ordered 25 Airbus A350 aircraft and 25 Boeing 787 Dreamliners, and has secured the rights to buy a further 50 of each aircraft in the future.

Boost for manufacturers

"This aircraft order is another significant step on the path to position United for long-term success in a highly competitive global market," said Glenn Tilton, the chairman of United Airlines' parent company UAL Corporation.

"We are investing in our future, and we are well positioned to take full advantage as the economy recovers in the shorter term."

United Airlines reported a quarterly loss of $63m (£39m) earlier this year.

The deal will also be seen as a boost for both Boeing and Airbus.

The firms, which dominate the aircraft market, have both seen significant delays to the development of their new aircraft in recent months.

Boeing's Dreamliner is currently more than two years behind schedule, while Airbus will begin building the A350 in 2010.