United Airlines Stock: Should You Invest Now?
When I first started looking into airline stocks, I’ll admit—I was hesitant. Airlines are notorious for turbulence in both skies and stock charts. But United Airlines Holdings Inc. (ticker: UAL) has been catching investor attention lately. With a share price hovering around $105 (as of late August 2025), UAL is flying through an interesting mix of challenges and opportunities.
In this article, I’ll break down UAL’s performance in plain English—covering stock moves, business fundamentals, risks, and long-term outlook. I’ll also sprinkle in personal experience (as both an investor and frequent flyer) to give you a perspective you won’t find in dry financial reports.
Quick Snapshot: UAL Stock at a Glance
- Current Price: $105.08
- 52-Week Range: $36 – $110
- Market Cap: ~$34 billion
- Recent EPS: $3.87 in Q2 2025
- Revenue (Q2): $15.2 billion
- Full-Year EPS Guidance: $9 – $11
United has had a strong rebound since the pandemic lows, but its earnings are still under investor scrutiny. Let’s dig deeper.
United Airlines: A Brief Background
United Airlines is one of the world’s largest carriers, with hubs in Chicago, Newark, Denver, Houston, and San Francisco. It operates nearly 5,000 daily flights and serves more than 350 destinations worldwide.
Key highlights:
- Member of the Star Alliance, which broadens its global reach.
- Revenue in 2024 hit $57.1 billion, making it the second-largest U.S. airline by revenue (behind Delta).
- Brand value estimated at $12.3 billion—strong recognition, but slightly below Delta.
What’s Driving UAL Stock Higher?
Travel Demand Rebound
Every time I fly United lately, I notice something: full planes. Both leisure and business travelers are returning in force. Business travel, especially premium cabins, is showing steady growth. That’s huge for profits since premium seats deliver far higher margins.
The United Next Strategy
United is modernizing aggressively:
- New Aircraft Orders: 700+ new jets on order.
- Cabin Upgrades: More premium seating, better layouts, and sleek interiors.
- Starlink Wi-Fi: Rolling out high-speed internet in partnership with SpaceX—something I’ve personally tried and loved.
These improvements aren’t just cosmetic; they enhance customer satisfaction and loyalty, which drives long-term revenue.
Share Buybacks
In 2025, United announced a $1.5 billion stock buyback program. That’s a strong sign management believes the stock is undervalued. For investors, buybacks often provide a tailwind by reducing outstanding shares and boosting EPS.
How UAL Compares with Competitors
| Airline | 2024 Revenue | 2025 YTD Stock Return | Market Position |
|---|---|---|---|
| Delta (DAL) | $58B | +15% | Leader in premium & brand |
| United (UAL) | $57B | +18% | Strength in global routes |
| Southwest (LUV) | $26B | +12% | Focus on domestic, low-cost |
| American (AAL) | $52B | +10% | Large network, weaker balance sheet |
United is clearly holding its ground, especially compared to American and Southwest. Delta remains its biggest rival, but United is catching up.
Risks: Not Everything Is Smooth Flying
Investing in airlines comes with turbulence. Here are UAL’s key risks:
- Earnings Pressure
Despite higher revenue, UAL’s net income fell 26% YoY in Q2. Fuel costs, labor contracts, and inflation are cutting into margins. - Economic Uncertainty
Airlines are highly cyclical. A slowdown in the economy or oil price spikes could hit demand hard. - Competition
Delta and Southwest continue to eat into different market segments. United’s challenge is to hold premium travelers while also staying price-competitive.
Personal Experience as a Flyer & Investor
I’ve flown United for more than a decade, from cramped domestic hops to international long-hauls. Here’s what stood out recently:
- Service: Noticeable improvements in crew friendliness and onboard product.
- Wi-Fi: The new Starlink internet was game-changing—I worked seamlessly on a cross-country flight.
- Crowded Planes: Flights were full, signaling demand is back.
As an investor, I noticed these real-world experiences aligned with United’s strategy. That’s part of why I started watching UAL stock more closely in 2023—and I’m glad I did.
Analyst Sentiment & Market Outlook
Wall Street analysts have mixed but cautiously optimistic views:
- Average Price Target: ~$115 (modest upside from current levels).
- Bull Case: $130 if travel demand stays strong and buybacks accelerate.
- Bear Case: $85 if recession hits or costs balloon.
For long-term investors, UAL looks like a potential value play in a recovering industry.
Long-Term Growth Catalysts
- Fleet Modernization → Lower fuel costs, better passenger experience.
- International Expansion → Stronger presence in Asia and Europe.
- Loyalty Program → MileagePlus is a hidden gem, with steady recurring revenue from credit card partnerships.
- Digital Innovation → Better apps, AI-powered scheduling, and personalized booking.
My Take: Is UAL a Buy?
United Airlines stock is not risk-free—but what airline ever is? Here’s my balanced view:
- Short-Term: Volatile, driven by quarterly earnings and oil prices.
- Medium-Term: Strong buyback plan + demand rebound = support for stock price.
- Long-Term: If United executes its fleet upgrades and international growth, UAL could rival Delta in both brand and profitability.
Personally, I see UAL as a “buy on dips” stock. I wouldn’t go all-in, but it’s a worthy part of a diversified portfolio—especially if you believe in global travel’s future.
Conclusion
United Airlines has come a long way since the pandemic lows. With solid strategies, loyal passengers (myself included), and industry recovery tailwinds, UAL is positioned to fly higher.
That said, airline stocks always carry risk—fuel volatility, competition, and economic downturns can quickly change the picture. If you’re comfortable with that turbulence, UAL is one to keep on your radar.
