United Airlines Holdings (UAL) AI Stock Analysis

• Market Cap: $34.33B
• Dividend Yield: N/A
• Average Volume (3M): 5.01M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.32
• Revenue Growth: 4.23%
• EPS Growth: 13.13%
• Country: US
• Employees: 109,200
• Sector: Industrials
• Sector Strength: 73
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 3.87
• Shares Outstanding: 323,732,100
• 10 Day Avg. Volume: 4,444,135
• 30 Day Avg. Volume: 5,014,054
• 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: 1.26
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 1.59
• Enterprise Value/Ebitda: 6.07
• 1Y Price Target: $109.71
• Price Target Upside: 2.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 82 Outperform
• Price Target: $119.00 ▲(11.64% Upside)

UAL's strong financial recovery and bullish technical indicators are the primary drivers of its high score. Positive earnings call insights and reasonable valuation further support the stock's attractiveness. However, high leverage and potential overbought technical conditions warrant caution.

Positive Factors

Financial Performance

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

Operational Efficiency

The improvement at Newark is driven by the FAA implementing hourly flight caps and the closed runway reopening ahead of schedule.

Strategic Positioning

Significant long-term upside is seen in this business as it is well-positioned to benefit from secular changes in the industry.

Negative Factors

Cost Management

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

Revenue Expectations

Unit revenues are expected to improve in 3Q25 and get close to flat in 4Q25, from -4% in 2Q25.

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

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: 106.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 106.59 is above the 20-day moving average (MA) of 101.29, above the 50-day MA of 92.54, and above the 200-day MA of 88.10, indicating a bullish trend. The MACD of 4.19 indicates Negative momentum. The RSI at 70.02 is Negative, neither overbought nor oversold. The STOCH value of 68.14 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
UAL	82 Outperform	$34.33B	10.68	27.70%	―	4.23%	13.13%
DAL	80 Outperform	$39.54B	8.89	30.07%	1.04%	3.01%	-0.90%
RYAAY	75 Outperform	$29.76B	14.26	27.12%	1.40%	10.61%	37.32%
LTM	72 Outperform	$14.90B	13.23	161.29%	2.01%	5.64%	63.23%
AAL	66 Neutral	$8.49B	16.53	-21.27%	―	1.50%	―
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
LUV	58 Neutral	$16.34B	46.80	4.30%	2.29%	1.64%	284.24%

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.