Here's Why United Airlines Stock Dipped (and Could Take Off Again Soon)
Shares in United Airlines (NASDAQ: UAL) declined by 15.7% in the week to Friday morning. There's little doubt why the stock fell; the management of United and its rival, Delta Air Lines, spoke at the J.P. Morgan 2025 Industrials Conference, outlining weaker market conditions in 2025.Delta's management updated the market, telling investors that its first-quarter revenue growth would now come closer to 4% compared to prior guidance of 7% to 9%. United CEO Scott Kirby also discussed the slowdown, saying, "We now expect to be at the low end of our guidance range."It's always difficult to discern trends in short-term numbers, and for Delta, it comes down to declining consumer and corporate confidence. Kirby put it down to a 50% drop in government and adjacent business, which represents 2% to 3% of its revenue, and "some bleed over to that into the domestic leisure market."Continue reading
Shares in United Airlines (NASDAQ: UAL) declined by 15.7% in the week to Friday morning. There's little doubt why the stock fell; the management of United and its rival, Delta Air Lines, spoke at the J.P. Morgan 2025 Industrials Conference, outlining weaker market conditions in 2025.
Delta's management updated the market, telling investors that its first-quarter revenue growth would now come closer to 4% compared to prior guidance of 7% to 9%. United CEO Scott Kirby also discussed the slowdown, saying, "We now expect to be at the low end of our guidance range."
It's always difficult to discern trends in short-term numbers, and for Delta, it comes down to declining consumer and corporate confidence. Kirby put it down to a 50% drop in government and adjacent business, which represents 2% to 3% of its revenue, and "some bleed over to that into the domestic leisure market."
