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.
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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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