A quick look in the dictionary under “good timing” might show a picture of United Airlines (NASDAQ:UAL). This airline stock just offered up a bit of a coup, and just ahead of the busiest travel season of the year: the holiday season. It’s going to make it easier for credit card spenders to gain elite status, and to set up their flights besides. Investors weren’t exactly unhappy with the news, sending United shares up fractionally in Thursday afternoon’s trading.
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The overall requirements, reports note, are remaining the same, which is something of a new twist as United has been known for changing its rules. That’s especially true since the COVID-19 pandemic shattered all the normal rules of travel. But what United is doing instead should still catch attention. Now, customers will get 25 points with every $500 they spend on a co-branded card. That’s a nice drop from before, where customers got 500 points for every $12,000 they spent. Moreover, the caps on spending that were there are now gone, which means customers can get to “elite” status that much faster.
This news comes at an odd time; while certainly, shoppers will welcome the move which allows them better and faster access to those top levels, it also comes at a time when credit card spending in general is likely to be curtailed. Just yesterday, we found out that the total balance on credit cards in the United States is $1.08 trillion, and with inflation nipping at heels all over, the credit card is likely to be shelved for a while in many households. Meanwhile, United is taking things even farther, adding flights out of O’Hare to more destinations and using larger planes to ensure more available capacity.
Is United Airlines a Buy or Sell Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on UAL stock based on 10 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average UAL price target of $59.60 per share implies 55.45% upside potential.
