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What's Going On With United Airlines (UAL) Stock?

Author: Henry Khederian | July 25, 2024 02:42pm

United Airlines Holdings Inc (NASDAQ:UAL) shares are trading higher by 1.6% to $46.77 during Thursday’s session, rebounding following earlier weakness. Shares are volatile following financial results from American Airlines Group Inc and Southwest Airlines Co.

When major players in the industry like American and Southwest report disappointing results or lower guidance, it often leads to a negative outlook for the sector as a whole. Investors may fear that United Airlines could face similar issues.

Southwest’s report highlights that industry-wide domestic capacity growth outpaced demand. This is a critical factor that could affect United Airlines, suggesting they might also experience pressure on unit revenues.

Southwest also reported significant increases in operating expenses due to market-driven inflation in salaries, wages, benefits, and higher maintenance expenses. These cost pressures could be industry-wide and may similarly impact United Airlines’ profitability.

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