United Airlines CEO Announces Suspension of Merger Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Merger Plans Shelved: United Airlines CEO Scott Kirby announced at the Bernstein investor conference that the airline will suspend any consolidation plans for the foreseeable future following American Airlines' rejection of his merger proposal, highlighting the challenges and uncertainties in industry consolidation.
- Lack of Partners: Kirby emphasized that while he believes a large transaction would make economic sense for United, the absence of a willing partner has stalled any merger initiatives, reflecting the competitive landscape of the current airline industry.
- View on JetBlue: Kirby dismissed speculation regarding a merger with JetBlue Airways, stating that United would need to improve JetBlue's margins by about 25 percentage points for a deal to be feasible, which he termed
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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: 115.060
Low
115.00
Averages
139.07
High
156.00
Current: 115.060
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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- Strong Industry Response: Major U.S. airlines and tourism groups warned that halting customs and immigration processing at 'sanctuary city' airports would have 'devastating' consequences for the industry and travelers, particularly with the upcoming international events.
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