UAL - United Airlines: Set To Fly Higher Despite Challenges

2024-06-17 06:56:03 ET

Summary

• United Airlines shares have risen over 20% this year after a 43% fall in the last 5 years.
• Despite challenges, UAL is focused on growing and boosting profits with a clear plan for the future.
• Q1 results showed solid revenue growth, effective cost management, and positive free cash flow generation, positioning the Company well for profitability.
• Given its higher margins, lower debt multiple, and positive outlook, I believe United Airlines shares do not warrant to trade at such a discount to its peers.

Introduction

United Airlines ( UAL ) is one of the world's largest airlines, with flights to over 350 destinations. Over the last 5 years, the shares have fallen 43% but have risen over 20% so far this year. Having faced multiple challenges, from the Covid-19 pandemic to problems at Boeing ( BA ), United Airlines has started to bounce back. With a clear plan for growing the airline and a positive set of financial results in the most recent quarter, United is on a solid future footing. Let me explain why United Airlines shares are a buy....

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