United Airlines Holdings (UAL) AI Stock Analysis

• Market Cap: $31.54B
• Dividend Yield: N/A
• Average Volume (3M): 6.67M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.13
• Revenue Growth: 4.24%
• EPS Growth: 20.29%
• Country: US
• Employees: 109,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 2.78
• Shares Outstanding: 323,737,980
• 10 Day Avg. Volume: 5,899,799
• 30 Day Avg. Volume: 6,670,991
• PEG Ratio: 0.52
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 8.45
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 7.05
• 1Y Price Target: $129.62
• Price Target Upside: 36.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $103.00 ▲(8.48% Upside)

United Airlines shows strong recovery potential with robust revenue growth and strategic investments in customer experience and loyalty programs. The positive earnings call sentiment and low P/E ratio suggest undervaluation. However, high leverage and short-term technical indicators pose risks. The company is well-positioned for future growth, but must address debt and cash flow challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand recovery and effective pricing strategies, supporting long-term financial health and market competitiveness.

Operational Efficiency

Improved operational efficiency enhances customer satisfaction and reduces costs, contributing to better profitability and competitive positioning.

Loyalty Program Performance

Strong loyalty program performance boosts repeat business and customer retention, providing a stable revenue stream and competitive advantage.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk during economic downturns, potentially impacting long-term sustainability.

Cash Flow Challenges

Decreasing free cash flow may hinder the company's ability to invest in growth initiatives and manage debt, affecting long-term financial stability.

Domestic Revenue Pressure

Pressure on domestic revenues could indicate competitive challenges or market saturation, potentially affecting future growth and profitability.

United Airlines Holdings Business Overview & Revenue Model

Company Description

United Airlines Holdings, Inc. (UAL) is a major American airline headquartered in Chicago, Illinois, operating a comprehensive domestic and international route network. As one of the largest airlines in the world, UAL offers passenger and cargo transportation services, with a fleet that serves destinations across North America, Asia, Europe, and Latin America. The company is a member of the Star Alliance, which enhances its global reach and connectivity. Its core offerings include passenger flights, frequent flyer programs, and various ancillary services such as baggage fees and in-flight sales.

How the Company Makes Money

United Airlines generates revenue primarily through ticket sales for passenger transportation, which constitutes the largest portion of its income. The company also earns significant revenue from cargo services, transporting goods and freight across its extensive network. Ancillary revenue streams contribute to earnings as well, including fees for checked baggage, seat selection, and in-flight purchases. Additionally, United Airlines benefits from its MileagePlus loyalty program, which drives repeat business and partnerships with hotels, car rental companies, and credit card issuers that provide further revenue sharing opportunities. Strategic partnerships and codeshare agreements with other airlines enhance its service offerings, expanding its market presence and customer base.

United Airlines Holdings Financial Statement Overview

Summary

United Airlines is on a recovery trajectory with strong revenue growth and improved profitability metrics. However, high leverage remains a concern, and cash flow management needs attention to ensure long-term financial stability. The company is well-positioned to capitalize on the recovering travel demand, but must focus on reducing debt and enhancing cash flow generation.

Income Statement

United Airlines has shown a strong recovery with a significant revenue growth rate of 65.9% in TTM, indicating robust demand recovery post-pandemic. The gross profit margin improved to 55.7%, reflecting better cost management and pricing power. However, the net profit margin remains modest at 5.6%, suggesting room for further profitability improvements. The EBIT and EBITDA margins are healthy, but slightly below industry leaders, indicating potential for operational efficiency gains.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.19, which is a concern as it indicates significant leverage. However, the return on equity is strong at 24.9%, suggesting efficient use of equity capital. The equity ratio is relatively low, reflecting a capital structure heavily reliant on debt, which could pose risks in a volatile market environment.

Cash Flow

Operating cash flow is strong, covering net income comfortably, but free cash flow has decreased by 8.3% in TTM, indicating challenges in maintaining cash flow growth. The free cash flow to net income ratio is reasonable at 39.6%, but there is room for improvement to ensure sustainable cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.37B	57.06B	53.72B	44.95B	24.63B	15.36B
Gross Profit	32.52B	19.42B	15.20B	10.64B	721.00M	-5.03B
EBITDA	7.03B	8.50B	7.83B	5.12B	1.50B	-5.34B
Net Income	3.29B	3.15B	2.62B	737.00M	-1.96B	-7.07B
Balance Sheet
Total Assets	76.31B	74.08B	71.10B	67.36B	68.17B	59.55B
Cash, Cash Equivalents and Short-Term Investments	13.33B	14.47B	14.39B	16.41B	18.41B	11.68B
Total Debt	31.32B	33.63B	36.74B	36.43B	39.37B	32.75B
Total Liabilities	62.00B	61.41B	61.78B	60.46B	63.15B	53.59B
Stockholders Equity	14.31B	12.68B	9.32B	6.90B	5.03B	5.96B
Cash Flow
Free Cash Flow	3.71B	3.83B	-260.00M	1.25B	-40.00M	-5.86B
Operating Cash Flow	9.37B	9.45B	6.91B	6.07B	2.07B	-4.13B
Investing Cash Flow	-6.50B	-2.65B	-6.11B	-13.83B	-1.67B	50.00M
Financing Cash Flow	-5.03B	-4.18B	-1.89B	-3.35B	6.40B	12.96B

United Airlines Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UAL, the sentiment is Negative. The current price of 94.95 is below the 20-day moving average (MA) of 96.94, below the 50-day MA of 99.96, and above the 200-day MA of 88.19, indicating a neutral trend. The MACD of -1.08 indicates Negative momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 56.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UAL.

United Airlines Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYAAY	83 Outperform	$32.24B	12.31	28.67%	1.55%	14.75%	71.73%
DAL	78 Outperform	$38.45B	8.30	28.52%	1.17%	4.33%	-1.58%
LTM	69 Neutral	$12.52B	11.33	161.29%	2.25%	5.07%	62.83%
UAL	68 Neutral	$31.54B	9.63	25.59%	―	4.24%	20.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAL	63 Neutral	$9.01B	16.00	―	―	1.27%	118.64%
LUV	61 Neutral	$16.78B	49.45	4.22%	2.25%	0.65%	―

United Airlines Holdings Corporate Events

United Airlines Reports Strong Q3 2025 Performance

United Airlines Holdings, Inc., a major player in the aviation industry, has reported a strong financial performance for the third quarter of 2025, surpassing Wall Street expectations. The company, known for its extensive global route network, has shown resilience amid economic volatility, driven by a growing base of brand-loyal customers. United Airlines reported a third-quarter pre-tax earnings of $1.3 billion with a pre-tax margin of 8.2%, and adjusted pre-tax earnings of $1.2 billion with an adjusted pre-tax margin of 8.0%. The airline’s total operating revenue increased by 2.6% year-over-year to $15.2 billion, with significant contributions from premium cabin, basic economy, cargo, and loyalty revenues. United Airlines continues to invest heavily in customer experience enhancements, with over $1 billion planned for improvements such as Starlink installations and upgraded inflight entertainment systems. The company also reported its highest third-quarter completion factor and carried a record number of passengers. Looking ahead, United Airlines is optimistic about the fourth quarter, expecting it to achieve the highest total operating revenue for a single quarter in its history. The company’s strategic investments and operational excellence are expected to continue driving growth and customer loyalty.

United Airlines’ Earnings Call: Record Revenues and Optimism

United Airlines’ recent earnings call painted a picture of robust financial and operational performance, despite some industry challenges. The company celebrated record revenues and significant investments in customer experience, alongside strong growth in its loyalty program. While there were noted challenges in Latin America and disruptions at Newark, the overall sentiment remained optimistic, with expectations for a strong fourth quarter.

United Airlines Exceeds Q3 Profit Expectations

On October 15, 2025, United Airlines announced its third-quarter financial results, reporting a profit that exceeded Wall Street expectations. The company achieved a pre-tax earnings of $1.3 billion and a pre-tax margin of 8.2%, with total operating revenue increasing by 2.6% year-over-year to $15.2 billion. United’s investments in customer experience and operational excellence have led to increased brand loyalty, helping the airline navigate economic volatility and positioning it for a strong fourth quarter. The airline also reported significant growth in premium cabin, Basic Economy, cargo, and loyalty revenues, and plans further investments in customer enhancements.

The most recent analyst rating on (UAL) stock is a Buy with a $121.00 price target. To see the full list of analyst forecasts on United Airlines Holdings stock, see the UAL Stock Forecast page.