Key Morningstar Metrics for United Airlines Holdings
What We Thought of United Airlines Holdings’ Earnings
United Airlines Holdings UAL reported first-quarter revenue and profit that somewhat exceeded our forecast, even though the firm also attributed a $200 million deficit to the temporary grounding of its Boeing 737 MAX 9 fleet. With a $124 million adjusted operating loss, the implication that the airline otherwise would have booked about $80 million in profit on $11.3 billion in revenue did not impress us.
United has also had to reshuffle its airplane order book to reflect delayed deliveries by Boeing. Due to the company’s spaced-out and generally higher capital spending forecast, we have lowered our fair value estimate of its stock to $35 per share from $38.
CEO Scott Kirby asserted during United’s earnings call that the company has established a “moat around its business” based on its “customer proposition,” network, and loyalty program. He then described how…