United Airlines Holdings (UAL) AI Stock Analysis

• Market Cap: $34.22B
• Dividend Yield: N/A
• Average Volume (3M): 5.77M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.18
• 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: 4,990,410
• 30 Day Avg. Volume: 5,773,535
• 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: 1.45
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 7.05
• 1Y Price Target: $128.60
• Price Target Upside: 18.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $117.00 ▲(7.94% Upside)

United Airlines demonstrates strong financial recovery and operational resilience, with robust earnings call insights supporting a positive outlook. Technical indicators show bullish momentum, and the stock is attractively valued. However, high leverage and cash flow management are areas needing improvement. The company's strategic focus on customer experience and international markets positions it well for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand recovery and effective market strategies, positioning United Airlines for sustained financial improvement.

Strategic Partnerships

The new partnership with Travelport enhances United's distribution capabilities, potentially increasing market reach and improving customer engagement.

Loyalty Program Growth

Strong growth in loyalty program revenues suggests increased customer retention and brand loyalty, which are crucial for long-term revenue stability.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, especially in volatile market conditions, potentially impacting long-term stability.

Cash Flow Challenges

Decreasing free cash flow indicates challenges in maintaining cash reserves, which could affect investment capacity and operational resilience.

Domestic Revenue Pressure

Declining domestic revenue per available seat mile suggests competitive pressures or market saturation, which could hinder future revenue growth.

United Airlines Holdings Business Overview & Revenue Model

Company Description

United Airlines Holdings, Inc. is a major American airline headquartered in Chicago, Illinois. It operates through its subsidiary, United Airlines, providing passenger and cargo air transportation services across a vast network that includes domestic and international routes. The company is a member of the Star Alliance, one of the largest global airline alliances. United Airlines offers core products and services that include scheduled air transportation, freight services, and ancillary services such as baggage fees, in-flight services, and loyalty programs through its MileagePlus program.

How the Company Makes Money

United Airlines generates revenue primarily through the sale of passenger tickets for air travel, which constitutes the bulk of its income. Additionally, the company earns significant revenue from cargo services, transporting goods and freight across its network. Ancillary revenue streams are also crucial, including fees for checked baggage, seat selection, in-flight services, and loyalty program memberships. United's MileagePlus program allows customers to earn and redeem miles, which not only fosters customer loyalty but also generates revenue through partnerships with hotels, car rental companies, and credit card issuers. The airline's strategic partnerships, including its membership in the Star Alliance, enhance its network reach and provide opportunities for joint marketing and shared revenue, further contributing to its earnings.

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: Positive
• Last Price: 108.39
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 108.39 is above the 20-day moving average (MA) of 99.79, above the 50-day MA of 98.34, and above the 200-day MA of 87.73, indicating a bullish trend. The MACD of 2.93 indicates Negative momentum. The RSI at 64.00 is Neutral, neither overbought nor oversold. The STOCH value of 76.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UAL.

United Airlines Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAL	80 Outperform	$45.66B	9.86	28.52%	0.96%	4.33%	-1.58%
UAL	74 Outperform	$34.22B	10.79	25.59%	―	4.24%	20.29%
LTM	67 Neutral	$14.67B	12.27	135.74%	1.99%	6.81%	58.22%
LUV	66 Neutral	$20.60B	60.70	4.22%	1.77%	0.65%	―
AAL	64 Neutral	$9.92B	18.20	―	―	1.27%	118.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALK	54 Neutral	$6.00B	42.17	3.53%	―	31.50%	-49.15%

United Airlines Holdings Corporate Events

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.