United Airlines Holdings (NASDAQ:UAL) has indicated it could stop services to the John F. Kennedy airport in New York if the airline does not receive additional slots at the airport.
Further, buoyed by robust demand, the company now sees its third-quarter top-line increasing 12% over the third quarter of 2019. Importantly, the Adjusted operating margin is seen improving to ~10.5%.
Earlier guidance had provided for a top-line growth of 11% and an adjusted operating margin of 10%.
CASM-ex is expected at 16% versus the prior guidance of 16% to 17%. The Street expects United to post an EPS of $2.07 for Q3. In the year-ago period, the company had posted a net loss per share of $1.02, better than the consensus estimate of $1.58.
Shares of other Airlines are mixed today with Delta AirLines (NYSE:DAL) and Southwest Airlines (NYSE:LUV) in the green while Ryanair Holdings (NASDAQ:RYAAY) experiencing weakness in the first hour of trade.
Is UAL Stock a Buy Now?
Overall, the Street has a Moderate Buy consensus rating on the stock with an average price target of $47.60.
This implies a 27.61% potential upside in the stock. That’s after a nearly 18% slide in the share price so far this year.
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