Why United Airlines Stock Gained Altitude Today
United Airlines Holdings (NASDAQ: UAL) has not seen bookings drop off now that summer is over. Investors worried about what the next few months might bring were relieved, sending United shares up 5.5% on Wednesday.
Airline stocks had a turbulent summer, with strong demand providing a much-needed boost to revenue but higher fuel and labor costs eating into profitability. Most of that higher demand was for leisure travel, and with corporations facing higher expenses due to rising inflation, there has been some reason for concern that now that Labor Day is behind us, demand could fall substantially.
But United is seeing no sign of a slowdown. The airline in a regulatory filing said that "exiting a robust summer, the company continues to see a strong demand environment." United is now forecasting third-quarter operating revenue to be 12% higher than it was in 2019, pre-pandemic, and better than its previous up 11% estimate.
Source Fool.com
