United Airlines Holdings, Inc. (NASDAQ: UAL) expects the 5G wireless deployment plan to negatively impact around 1.25 million of its passengers and at least 15,000 flights per year in the U.S., a report published by Reuters said.
Airline companies in the U.S. expect 5G services to interfere with an aircraft’s key safety systems and lead to the suspension of cargo and passenger flights. They want the federal government to delay the rollout of 5G wireless services, scheduled to begin on January 19, around main airports.
UAL said the current rules “will result in significant restrictions on Boeing (NYSE: BA) 787s, 777s, 737s and regional aircraft in major cities like Houston, Newark, Los Angeles, San Francisco and Chicago.”
About United Airlines
United Airlines provides air transportation services in North America, the Pacific region, the Atlantic region and Latin America. The company serves 200 domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington.
UAL’s upcoming earnings release for the fourth quarter of Fiscal Year 2021 is scheduled for January 19, 2022.
Wall Street’s Take
Last week, Barclays (LON: BARC) analyst Brandon Oglenski reiterated a Hold rating on the stock and lowered the price target to $52 from $58 (11.3% upside potential).
The analyst said, “Renewed pandemic effects are likely to impair first-quarter guidance for the airlines but leisure-focused low-cost carriers can differentiate as 2022 progresses.”
Additionally, Christopher Stathoulopoulos, an analyst with Susquehanna, upgraded the rating on United Airlines to Buy from Hold and raised the price target from $50 to $60 (28.4% upside potential).
Overall, the stock has a Moderate Buy consensus rating based on 6 Buys, 3 Holds and 1 Sell. The average UAL price target of $60.20 implies 28.8% upside potential. Shares have gained 4.5% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into United Airlines’ performance.
According to the tool, compared to the previous year, United Airlines’ website traffic registered a nearly 45% rise in global visits in December. Moreover, the website traffic has increased 45.1% year-to-date against the same period last year.
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