United Airlines Lowers Profit Outlook Amid Fuel Price Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy UAL?
Source: seekingalpha
- Profit Outlook Downgrade: United Airlines (UAL) lowered its profit outlook in postmarket trading due to a surge in jet fuel prices, causing a 1.5% drop in stock price as investors reassess future profitability.
- Diverse Revenue Performance: Despite challenges, UAL's diverse revenue streams showed resilience in Q1, with premium revenue up 14%, loyalty revenue up 13%, and basic economy revenue up 7%, indicating strong performance across various segments.
- Record Revenue Quarter: The first quarter marked UAL's highest-ever Q1 revenue, with total revenue per available seat mile (PRASM) increasing by 6.9% to $0.1880, reflecting robust growth across all regions and enhancing the company's financial stability.
- Cautious Future Outlook: Looking ahead, UAL projects Q2 EPS between $1.00 and $2.00 (midpoint $1.50), below the consensus of $2.08, and full-year EPS between $7.00 and $11.00 (midpoint $9.00), also below the consensus of $9.33, highlighting market concerns over rising fuel costs.
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Analyst Views on UAL
Wall Street analysts forecast UAL stock price to rise
16 Analyst Rating
15 Buy
1 Hold
0 Sell
Strong Buy
Current: 91.250
Low
115.00
Averages
139.07
High
156.00
Current: 91.250
Low
115.00
Averages
139.07
High
156.00
About UAL
United Airlines Holdings, Inc. is a holding company. The Company transports people and cargo throughout North America and to destinations in Asia, Europe, Africa, the Pacific, the Middle East and Latin America. The Company, through United Airlines, Inc., and its regional carriers, operates across over six continents, with hubs at Chicago O'Hare International Airport (ORD), Denver International Airport (DEN), George Bush Intercontinental Airport (IAH), Los Angeles International Airport (LAX), Newark Liberty International Airport (EWR), San Francisco International Airport (SFO), Washington Dulles International Airport (IAD) and A.B. Won Pat International Airport (GUM). Its hub and spoke system allow it to transport passengers between a large number of destinations with frequent services. The Company has contractual relationships with various regional carriers to provide regional aircraft service branded as United Express. It provides freight and mail transportation services (Air Cargo).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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