United Airlines (UAL) has teamed up with South African airline Airlink to provide the highest connectivity between the U.S. and Southern Africa, compared to any other airline alliance.
Founded in 1992, Airlink is an independent, privately-owned, full-service premium airline serving more than 45 destinations in 12 countries.
Markedly, shares of UAL, with a current market capitalization of around $16 billion, have gained 41% over the past year. (See United Airlines stock charts on TipRanks)
Through the codeshare agreement, which is subject to mandatory government approvals, customers will benefit from one-stop connections from the U.S. to over 40 locations in Southern Africa.
Further, United is the first airline to link its loyalty program with Airlink. Hence, United’s MileagePlus members will be able to earn and redeem miles when they travel on Airlink flights.
Notably, United also has a collaboration with Star Alliance member South African Airways.
Patrick Quayle, VP of International network and alliances at United, commented, “United continues to demonstrate our commitment to Africa, starting three brand new flights to the continent this year alone including new service to Accra, Ghana; Lagos, Nigeria, and Johannesburg, South Africa.”
He further added, “And now through our codeshare agreement with Airlink – which is the most expansive partnership in Southern Africa – customers will be able to easily explore more bucket list destinations across the continent including easy connections to Zambia, Zimbabwe, and more.”
UBS analyst Myles Walton recently decreased the price target from $67 to $61 (25.3% upside potential) while reiterating a Buy rating on the stock.
Consensus among analysts is a Hold based on 6 Buys, 9 Holds, and 2 Sells. The average United Airlines price target of $58.54 implies 20.3% upside potential to current levels.
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