United Airlines Expands Starlink In-Flight Wi-Fi Service
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23h ago
0mins
Should l Buy UAL?
Source: Benzinga
- Service Expansion: United Airlines has announced an expansion of its partnership with Elon Musk-backed Starlink satellite internet service, now available on over 300 aircraft, nearly covering its entire regional fleet, with plans to extend to over 800 aircraft by year-end, significantly enhancing passenger internet access.
- User Base: The service is currently utilized by over 7 million passengers, and it is free for MileagePlus members, which not only boosts customer loyalty but also has the potential to attract new users, enhancing the airline's competitive position in the market.
- Industry Dynamics: Despite Ryanair CEO O'Leary's concerns about fuel drag penalties associated with Starlink, he anticipates that all airlines will eventually offer free in-flight Wi-Fi, indicating a gradual acceptance of this technology across the industry and its future ubiquity.
- Stock Performance: United Airlines' stock surged 4.92% at market close on Monday and climbed an additional 0.34% in after-hours trading to $107.72, reflecting positive market sentiment regarding its business expansion and growth potential.
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Analyst Views on UAL
Wall Street analysts forecast UAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UAL is 139.07 USD with a low forecast of 115.00 USD and a high forecast of 156.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
15 Buy
1 Hold
0 Sell
Strong Buy
Current: 107.350
Low
115.00
Averages
139.07
High
156.00
Current: 107.350
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 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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- User Base: The service is currently utilized by over 7 million passengers, and it is free for MileagePlus members, which not only boosts customer loyalty but also has the potential to attract new users, enhancing the airline's competitive position in the market.
- Industry Dynamics: Despite Ryanair CEO O'Leary's concerns about fuel drag penalties associated with Starlink, he anticipates that all airlines will eventually offer free in-flight Wi-Fi, indicating a gradual acceptance of this technology across the industry and its future ubiquity.
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- Market Growth Forecast: Willie Walsh, Director General of IATA, indicated that the U.S. aviation market is expected to be 'broadly flat' while global demand is projected to grow by 4.9%, suggesting a potential lag for the U.S. in the global tourism recovery.
- Challenges for Airlines: Walsh highlighted that shortages of aircraft, tariffs, tighter immigration policies, and supply chain issues are impacting major U.S. airlines, leading to stagnation in the American aviation market, which needs to address these structural issues to restore growth.
- Political Interference Concerns: When asked about President Trump's threat to decertify Canadian aircraft, Walsh expressed 'full confidence' in the FAA, believing that politics would not interfere with regulatory matters; however, the FAA Administrator called for equitable resource allocation for certifying U.S. and foreign aircraft.
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- Service Expansion: United Airlines has announced an expansion of its partnership with Elon Musk-backed Starlink satellite internet service, now available on over 300 aircraft, nearly covering its entire regional fleet, with plans to extend to over 800 aircraft by year-end, significantly enhancing passenger internet access.
- User Base: The service is currently utilized by over 7 million passengers, and it is free for MileagePlus members, which not only boosts customer loyalty but also has the potential to attract new users, enhancing the airline's competitive position in the market.
- Industry Dynamics: Despite Ryanair CEO O'Leary's concerns about fuel drag penalties associated with Starlink, he anticipates that all airlines will eventually offer free in-flight Wi-Fi, indicating a gradual acceptance of this technology across the industry and its future ubiquity.
- Stock Performance: United Airlines' stock surged 4.92% at market close on Monday and climbed an additional 0.34% in after-hours trading to $107.72, reflecting positive market sentiment regarding its business expansion and growth potential.
See More
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- Manufacturing Index Surge: The US January ISM manufacturing index rose by 4.7 to 52.6, surpassing expectations of 48.5, marking the strongest expansion in over 3.25 years, which bolstered market optimism and contributed to stock gains.
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- High-Frequency Contracts: Notably, the $110 strike call option expiring on February 6, 2026, has seen 1,291 contracts traded today, representing around 129,100 underlying shares of UAL, suggesting bullish sentiment among investors at this price level.
- XPO Options Trading Activity: XPO's options trading volume reached 5,225 contracts, representing approximately 522,500 shares, which is about 42.8% of its average daily trading volume of 1.2 million shares over the past month, reflecting active market interest in its stock.
- Key Contract Analysis: The $115 strike put option expiring on February 20, 2026, has recorded a trading volume of 3,806 contracts today, representing approximately 380,600 shares of XPO, indicating investor expectations for potential price declines in the future.
See More
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- Route Resumption Plan: American Airlines plans to resume flights to Venezuela for the first time since 2019, becoming the first U.S. carrier to restart service, indicating a gradual recovery of the country's aviation market.
- Safety Assessment Collaboration: The airline stated it will work closely with federal authorities to conduct necessary permissions and security assessments, demonstrating a strong commitment to passenger safety.
- Historical Context: American Airlines suspended its flights to Venezuela in 2019 due to political unrest and safety concerns, reflecting the complexities and uncertainties surrounding aviation services in the region.
- Industry Response: While Delta Air Lines and United Airlines paused their services in 2017, they have not yet commented on this resumption, indicating a cautious approach within the industry towards the Venezuelan market.
See More
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Investor Sentiment: Despite Powell's stance, investors are advised to consider the potential connection between gold prices and inflation.
See More
