United Airlines (NASDAQ:UAL) Announces New Initiatives, Hikes Fees
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United Airlines (NASDAQ:UAL) Announces New Initiatives, Hikes Fees

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United hikes its baggage fees, joining several other airlines looking for easy-access revenue streams.

United Airlines (NASDAQ:UAL) has been busy lately. Recently, this airline stock has announced a series of new initiatives that should make some passengers happy and others much less so. Several new developments have combined to produce some positive results, and United is up fractionally in Friday afternoon’s trading as a result. Perhaps the biggest development, and one that few will appreciate, is a recent rise in the checked-bag fee on United flights.

Just days ago, American Airlines (NASDAQ:AAL) did the exact same thing in a move that sent its share price spiraling downward. Now, those who book a checked bag at the airport will pay $40, but paying in advance will cost $35. A second checked bag, meanwhile, will run $50 the day of or $45 in advance. This is the first price hike in almost four years for United, so it was likely due. It’s also on par with what American Airlines passengers are paying, though for United, the second checked bag will be slightly more expensive.

A Flood of Further Developments

In a flood of new developments, United is reinstating direct flights from the United States to Israel. It’s the first U.S. carrier to do so since the Israel–Hamas war got started. It has also recently completed the largest pilot training center on the planet and is still working on building it out. United doesn’t plan to run short of pilots any time soon. Furthermore, United is looking to Airbus (OTHEROTC:EADSY) to replace 737 Max orders that are now delayed with Boeing (NYSE:BA). Boeing was already five years behind schedule, and the recent FAA production restrictions certainly won’t help.

Is United Airlines a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on UAL stock based on eight Buys and four Holds assigned in the past three months, as indicated by the graphic below. After an 8.04% rally in its share price over the past year, the average UAL price target of $58.08 per share implies 28.08% upside potential.



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