United Airlines Stock Is Too Risky to Own in 2022
Last week, United Airlines (NASDAQ: UAL) reported fourth-quarter results at the better end of its guidance range, despite the negative impact of the omicron variant on air travel demand. This achievement highlights the pent-up demand that could be unleashed later in 2022 if the COVID-19 pandemic starts to moderate.
However, the fact remains that United is still losing money. And even if demand does recover soon, there's no way to know how much that will boost profitability, considering the ultra-competitive nature of the airline industry. As a result, United Airlines stock is too risky to be worth buying, despite its turnaround potential.
Six months ago, United Airlines executives confidently predicted that the company would return to consistent profitability in the second half of 2021. Even the early spread of the delta variant didn't faze management, which reported no impact on bookings as of July 21.
Source Fool.com
