United Airlines Holdings (UAL) AI Stock Analysis

• Market Cap: $29.50B
• Dividend Yield: N/A
• Average Volume (3M): 7.92M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.27
• Revenue Growth: 4.23%
• EPS Growth: 13.13%
• Country: US
• Employees: 109,200
• Sector: Industrials
• Sector Strength: 95
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 3.87
• Shares Outstanding: 323,732,100
• 10 Day Avg. Volume: 9,121,490
• 30 Day Avg. Volume: 7,923,750
• PEG Ratio: -0.96
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.31
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: 2.35
• 1Y Price Target: $109.07
• Price Target Upside: 19.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 80 Outperform
• Price Target: $102.00 ▲(11.95%Upside)

UAL's overall score reflects its strong financial recovery and technical momentum. Its operational excellence and strategic initiatives are significant strengths, although high leverage and regional revenue challenges require attention.

Positive Factors

Cash Flow and Debt Management

The carrier generated $1.1B in free cash flow during the quarter and $3.4B over the first six months of this year, helping to drive United’s trailing 12-month adjusted leverage down to just 2.0x.

Financial Performance

United Airlines reported solid 2Q25 EPS of $3.87, beating the midpoint of its $3.25-4.25 guided range, despite disruptions and flight cancellations.

Market Position and Strategy

United has generated strong results despite the challenges, allowing it to take share and invest in durable product differentiation.

Negative Factors

Market Dynamics

United is stating that it sees industry supply inflecting down, which would seem to be similar to what had fueled a robust share price rally previously.

Operational Costs

Commentary on 2H25 unit costs growing similarly to 2Q25 at +2.2% was better than previous +3.5-4.0% forecasts.

United Airlines Holdings Business Overview & Revenue Model

Company Description

United Airlines Holdings, Inc. (UAL) is a major American airline holding company headquartered in Chicago, Illinois. It operates through its primary subsidiary, United Airlines, which is one of the largest airlines in the world. The company is involved in the transportation sector, offering comprehensive air travel services. United Airlines provides both domestic and international flights, serving millions of passengers annually across a vast network of routes. The airline is known for its extensive global reach, with hubs in key cities such as Chicago, Denver, Houston, Los Angeles, Newark, San Francisco, and Washington, D.C.

How the Company Makes Money

United Airlines Holdings generates revenue primarily through passenger ticket sales, which account for the largest portion of its income. This includes both economy and premium seating options, as well as ancillary services such as baggage fees, seat upgrades, and in-flight purchases. The company also earns revenue from its cargo operations, transporting freight and mail on its passenger flights. Additionally, United benefits from partnerships and alliances, such as its membership in the Star Alliance, which expands its network and offers code-sharing opportunities. Loyalty programs, business travel contracts, and strategic partnerships with credit card companies further contribute to United's earnings by enhancing customer engagement and providing additional revenue streams.

United Airlines Holdings Financial Statement Overview

Summary

UAL exhibits strong financial recovery post-pandemic, with robust revenue and profitability growth. The income statement shows healthy margins and revenue growth, while the balance sheet indicates high leverage typical for the industry. Cash flow improvements are notable, though debt levels require careful management.

Income Statement

UAL has shown a strong recovery over the past few years, with significant improvements in revenue and profitability. The Gross Profit Margin for TTM stands at approximately 46.76%, and Net Profit Margin at around 5.71% are healthy for the airline industry. Revenue growth has been robust, with a notable increase from the pandemic lows. The EBIT Margin of about 8.62% and EBITDA Margin of 12.27% indicate efficient operational performance.

Balance Sheet

UAL's balance sheet reflects a moderate financial position. The Debt-to-Equity Ratio is approximately 1.95, indicating a relatively high leverage but typical for the industry. Return on Equity (ROE) for TTM is around 24.74%, showing strong returns for shareholders. However, the Equity Ratio is about 17.33%, suggesting limited equity buffer.

Cash Flow

The cash flow statement shows a solid operating cash flow to net income ratio of 2.92 for TTM, indicating strong cash generation. Free cash flow has turned positive, with a growth rate of about 5.60% over the previous annual report, reflecting improved capital management. However, fluctuations in financing activities may pose risks.

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

United Airlines Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.11
• 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 91.11 is above the 20-day moving average (MA) of 86.29, above the 50-day MA of 81.36, and above the 200-day MA of 84.92, indicating a bullish trend. The MACD of 3.27 indicates Negative momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 52.66 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
RYAAY	82 Outperform	$31.48B	15.09	27.12%	0.03%	10.61%	37.32%
UAL	80 Outperform	$29.50B	9.13	27.70%	―	4.23%	13.13%
DAL	79 Outperform	$35.82B	7.96	30.07%	1.09%	3.01%	-0.90%
PAC	73 Outperform	$11.37B	24.24	47.69%	0.02%	7.45%	-13.53%
AAL	59 Neutral	$7.59B	14.79	-21.27%	―	1.50%	―
LUV	58 Neutral	$17.44B	49.94	4.30%	2.17%	1.64%	284.24%
Sector *	58 Neutral	HK$14.89B	4.74	-2.78%	5.07%	3.80%	-54.55%

United Airlines Holdings Corporate Events

United Airlines Reports Strong Q2 Profit Growth

On July 16, 2025, United Airlines reported a second-quarter profit that exceeded Wall Street expectations, with significant growth in earnings and pre-tax margin compared to the previous year. The company experienced a 6-point acceleration in booking demand starting in early July, attributed to reduced geopolitical and macroeconomic uncertainties. United updated its full-year adjusted diluted earnings per share guidance to $9.00 to $11.00, reflecting confidence in its business model. The airline also highlighted operational achievements, such as improved on-time performance and low seat cancellation rates, and announced strategic initiatives including debt repayment and new collaborations with JetBlue and Spotify.

The most recent analyst rating on (UAL) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on United Airlines Holdings stock, see the UAL Stock Forecast page.

United Airlines Holds Annual Meeting, Elects Board Members

On May 21, 2025, United Airlines Holdings held its Annual Meeting where stockholders elected 11 directors to the Board, including Captain Brian Noyes and Richard Johnsen, representing the ALPA and IAM, respectively. Additionally, stockholders ratified the appointment of Ernst & Young LLP as the independent auditor for 2025, approved executive compensation, and rejected a proposal to remove the one-year stock ownership requirement for calling special meetings.

The most recent analyst rating on (UAL) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on United Airlines Holdings stock, see the UAL Stock Forecast page.