Shares in United Airlines (UAL) took off today as it unveiled the biggest in-flight seatback screen in the U.S. to cash in on big spending flyers.
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Caviar and Care
UAL stock climbed 2% as it said it would also increase the number of premium seats as well as services for customers in its new Boeing (BA) fleet.
The airline unveiled a new business class suite called ‘Polaris Studio’ for the new planes, which will have 25% larger seats, skincare kits, and a huge 27-inch, 4K OLED seatback screen – the largest among U.S. carriers.
For those all-important movie snacks premium customers will also be able to enjoy a caviar service.
The carrier expects the first 787-9 Dreamliner with the new interior before the end of this year, with the inaugural flights planned in 2026 from San Francisco to Singapore and San Francisco to London. It expects 30 of these jets to join its fleet by 2027.
Rise in Premium Demand
North American airlines, including UAL, have highlighted a rise in high-margin premium travel since the COVID-19 pandemic with flyers looking for experiences and hospitality rather than buying expensive goods.
A rebound in corporate travel is also helping airlines offset concerns about the state of the U.S. and global economies and a reduction in demand from passengers to fly to the States.
Indeed, according to a report from the World Travel and Tourism Council today, international travel spending in the United States is expected to decline about 7%, or $12.5 billion, in 2025 as President Donald Trump’s political moves and a strong dollar prompt foreign visitors to opt for other destinations.
Is UAL a Good Stock to Buy Now?
On TipRanks, UAL has a Strong Buy consensus based on 13 Buy and 2 Hold ratings. Its highest price target is $135. UAL stock’s consensus price target is $97.79 implying an 21.74% upside.
