United Stock Jumps on New International Flights. Why Delta, American are Rising, Too.

Dow Jones
2 hours ago

United Airlines stock was flying higher early Tuesday after announcing the biggest international expansion in its history. The carrier added 10 international cities to its 2027 summer schedule as it looks to capitalize on strong international travel demand in recent years.

The shares were pointing around 1.8% higher shortly after the open, a welcome boost as they have fallen 16% since the beginning of July.

Its peers Delta Air Lines and American Airlines were also rising around 1% ans 1.5%, respectively, suggesting falling oil prices may be playing a larger role in United's stock move. Brent crude futures were trading at $88.05 a barrel, down 2.7%, early Tuesday.

Airline stocks have been hit by turbulence in the second half of the year. The U.S. Global JETS ETF has fallen 11% since the start of July, while Delta is down 12% and American has slumped 25% over that period.

The moves mirror oil's gains-Brent crude prices are up 21% in the quarter.

While oil prices may dictate the stocks' near-term direction of travel, United's international expansion is a reminder that it's well-placed for future gains.

International revenue has been a strong area of growth for United in recent years-it jumped 11% to $6.6 billion in the second quarter, making up 41% of the airline's total passenger revenue. In the second quarter of 2019, the last comparable pre-Covid-19 period, that stood at just under $4 billion-a 67% rise since.

The carrier said it would add nonstop flights to Okinawa in Japan, Toulouse and Marseille in France, and Luxembourg City. It also announced new flights to Ibiza and Valencia in Spain, Terceira in Portugal, Ljubljana in Slovenia, and two routes to Italian islands-Olbia in Sardinia and Catania in Sicily.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10