Odds In Favor Of United Airlines Stock?

Odds In Favor Of United Airlines Stock?

United Airlines Boeing 767-400 ER Extended Range with 2x CF6-80 engines aircraft landing at ... [+] Amsterdam Schiphol International Airport AMS EHAM in The Netherlands, the Dutch capital. The airplane has registration N66057 and its type is exactly Boeing 767-424(ER) . UAL / UA is a major American airline headquartered in Chicago, Illinois connects Amsterdam with ChicagoO'Hare, Houston Intercontinental, Newark, Washington Dulles and seasonal to San Francisco (Photo by Nicolas Economou/NurPhoto via Getty Images) The sharp rise in benchmark oil prices since January has been weighing on airline stocks as fuel costs account for almost one quarter of total operating expenses. Per annual filings, United Airlines (NASDAQ: UAL) does not have fuel hedges to shield itself from short-term price fluctuations. In 2013, the company registered an operating profit margin of 3% and generated positive cash despite the WTI benchmark reaching $100/bbl. Thus, the stock's $10 billion contraction in market capitalization looks overdone as the company incurred $4. 5 billion of operating cash burn over the last two years and passenger demand runs strong. Our interactive dashboard on United Airlines valuation highlights the historical trends in revenues, earnings, valuation multiple, and forecast for FY2022. Before the pandemic, United Airlines' revenues observed