United Airlines (NASDAQ:UAL) considers the Federal Aviation Administration (FAA) at fault for the recent aircraft cancellations. The airline holds the agency responsible, stating that air traffic control problems arising from a shortage of staff exacerbated the disruptions caused by severe storms in the New York region.
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According to flight monitoring platform FlightAware, United Airlines had to cancel a total of 1,694 flights between June 25 and June 27. Additionally, as of now, 255 flights, which account for almost 9% of today’s scheduled flights, have been canceled by the airline.
It is worth noting that in March, the FAA issued a notification regarding a potential shortage of air traffic controllers at its New York facility, which could potentially affect summer travel. The agency mentioned that it had only reached 54% of its staffing target for certified professional controllers at that time.
United CEO Scott Kirby intends to discuss with the FAA and the Department of Transportation measures that can prevent similar flight disruptions during the summer season.
UAL Stock – New 52-Week High
Yesterday, UAL stock hit a new 52-week high of $56.44. This stock’s upward trajectory indicates positive investor sentiment and reflects growing confidence in the company’s performance and outlook for the aviation industry.
The strong rebound in travel interest has fueled investor optimism, resulting in a notable increase in the stock values of airline companies. Kirby recently said leisure demand was very robust, which more than makes up for the lack of business travel.
Is UAL a Good Stock to Buy?
Of the six top analysts covering United in the past three months, four have a Buy rating and two suggest a Hold. Overall, the stock scores a Moderate Buy consensus rating. Meanwhile, the average UAL stock price target stands at $67.60, implying upside potential of 20.7%. Shares are up 50.6% year-to-date.
It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations. Moreover, each analyst has a remarkable success rate.
