United Airlines Holdings (UAL) AI Stock Analysis

• Market Cap: $32.79B
• Dividend Yield: N/A
• Average Volume (3M): 6.52M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.25
• 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: 8,237,500
• 30 Day Avg. Volume: 6,516,081
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: 6.96
• 1Y Price Target: $129.46
• Price Target Upside: 27.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 76 Outperform
• Price Target: $117.00 ▲(15.51% Upside)

UAL's overall stock score reflects strong financial performance and a positive outlook from the latest earnings call. The company's robust recovery and strategic investments position it well for future growth. Technical indicators suggest a positive trend, though caution is advised due to potential overbought conditions. Valuation metrics indicate the stock is reasonably priced.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand and effective market strategies, enhancing long-term profitability and market position.

Cash Flow Generation

Strong free cash flow generation provides financial flexibility for strategic investments, debt reduction, and enhances shareholder value.

Loyalty Program Performance

The growth in loyalty program revenues strengthens customer retention and provides a stable revenue stream, supporting long-term growth.

Negative Factors

High Leverage

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

Domestic Revenue Pressure

Declining domestic revenue per available seat mile suggests competitive pressures and potential challenges in maintaining profitability in key markets.

Challenges in Latin America

Underperformance in Latin America highlights regional market challenges, which could impact overall revenue growth and strategic positioning.

United Airlines Holdings Business Overview & Revenue Model

Company Description

United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, training, and maintenance services for third parties. The company was formerly known as United Continental Holdings, Inc. and changed its name to United Airlines Holdings, Inc. in June 2019. United Airlines Holdings, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.

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

UAL demonstrates strong recovery and improved financial health post-pandemic. The income statement reflects significant growth in revenue and profitability. The balance sheet's high leverage is typical for the industry but requires careful management. Cash flow improvements indicate better financial management, though continued attention to debt levels is necessary.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.99B	57.06B	53.72B	44.95B	24.63B	15.36B
Gross Profit	27.12B	19.42B	15.20B	10.64B	721.00M	-5.03B
EBITDA	7.12B	8.50B	7.83B	5.12B	1.50B	-5.34B
Net Income	3.31B	3.15B	2.62B	737.00M	-1.96B	-7.07B
Balance Sheet
Total Assets	77.16B	74.08B	71.10B	67.36B	68.17B	59.55B
Cash, Cash Equivalents and Short-Term Investments	15.62B	14.47B	14.39B	16.41B	18.41B	11.68B
Total Debt	32.79B	33.63B	36.74B	36.43B	39.37B	32.75B
Total Liabilities	63.79B	61.41B	61.78B	60.46B	63.15B	53.59B
Stockholders Equity	13.37B	12.68B	9.32B	6.90B	5.03B	5.96B
Cash Flow
Free Cash Flow	4.04B	3.83B	-260.00M	1.25B	-40.00M	-5.86B
Operating Cash Flow	9.65B	9.45B	6.91B	6.07B	2.07B	-4.13B
Investing Cash Flow	-7.27B	-2.65B	-6.11B	-13.83B	-1.67B	50.00M
Financing Cash Flow	-3.96B	-4.18B	-1.89B	-3.35B	6.40B	12.96B

United Airlines Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.29
• 50DMA: Negative
• 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 101.29 is above the 20-day moving average (MA) of 98.80, below the 50-day MA of 101.59, and above the 200-day MA of 88.84, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 44.27 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	78 Outperform	$40.32B	8.41	28.52%	1.09%	4.33%	-1.58%
UAL	76 Outperform	$32.79B	10.15	25.59%	―	4.24%	20.29%
RYAAY	75 Outperform	$31.11B	14.66	27.12%	1.61%	10.61%	37.32%
LUV	68 Neutral	$17.60B	50.41	4.30%	2.09%	1.64%	284.24%
LTM	65 Neutral	$12.93B	11.48	161.29%	2.24%	5.64%	63.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAL	58 Neutral	$8.03B	15.65	―	―	1.50%	―

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.

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.