United Airlines Holdings (UAL) has purchased 200 Boeing (BA) and 70 Airbus Group SE (EADSF) aircraft in the largest combined order in the history of the airline industry.
Air transportation services provider United Airlines’ United Next plan is likely to create tens of thousands of jobs, drastically reduce carbon emissions per seat, and increase the number of available seats per domestic departure by nearly 30% by 2026.
The company said that the purchase order includes 70 Airbus A321neos, 150 Boeing 737 MAX 10s, and 50 Boeing 737 MAX 8s aircraft, which have features like LED lighting, in-flight WiFi, larger overhead bins, and seat-back entertainment. (See United Airlines stock chart on TipRanks)
United Airlines plans to begin flying the 737 MAX 8 this summer and A321neo and 737 MAX 10 in early 2023. Furthermore, by 2025, the airline aims to upgrade its entire mainline, narrow-body fleet with new features.
United Airlines CEO Scott Kirby said, “Our United Next vision will revolutionize the experience of flying United as we accelerate our business to meet a resurgence in air travel.”
Notably, by adding these new aircraft, the company expects to make an annual contribution of around $50 billion to the U.S. economy by 2026.
Jefferies analyst Sheila Kahyaoglu recently maintained a Hold rating on the stock with a price target of $55 (5.5% upside potential). The analyst expects the company to record a loss of $4.29 per share in the second quarter of 2021.
Overall, the stock has a Moderate Buy consensus rating based on 5 Buys, 8 Holds, and 1 Sell. The average United Airlines price target of $61.46 implies 18% upside potential from current levels. UAL shares have gained 50.7% over the past year.
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