Airline company United Airlines (NASDAQ:UAL) is considering using passenger data to help brands serve targeted ads to its customers, the Wall Street Journal reported on Wednesday. According to the report, some of these tailored advertisements could show up on the airline’s in-flight entertainment system or on the app its customers use to purchase tickets and check-in. However, the company has yet to decide if it will pursue this path.
While airline customers often get exposed to plenty of ads during their trips, a more tailored model would introduce personalized ads for customers based on their interests and profiles. However, the company is cautiously evaluating the plan.
While the plan could help expand United’s ads business, the company is also weary about customers’ reactions. Should the company go ahead with the plan, United Airlines will allow customers to opt out of having their personal data used.
At the time of writing, shares of the company have gained over 2%.
Is UAL a Good Stock to Buy?
On TipRanks, UAL stock has a Moderate Buy consensus rating based on 10 Buys, five Holds, and one Sell. After a 7.6% decrease in its share price over the past year, the average United Airlines price target of $59.60 per share implies 45.37% upside potential.
