Back to top

Analyst Blog

United Airlines – the wholly owned subsidiary of United Continental Holdings Inc. (UAL - Analyst Report) – announced its plan to expand its service from its home base, Chicago. Elmira, Topeka and States College will be added to United Airlines’ route from the beginning of next year.

United Airlines will add two daily round trip flights from Chicago’s O’Hare International airport to Elmira, NY, State College, PA and Topeka, KS.

United Airlines’ affiliate airline Express Jet will use a 50 seat regional aircraft and take approximately 2 hours 45 minutes and 2 hours 30 minutes to reach Elmira and State College respectively. However, the return flights will take around 1 hour to reach Chicago. Notably, in Apr 2013, United Airlines along with its airline partner SkyWest Inc. (SKYW - Snapshot Report) agreed to buy 30 Embraer SA’s (ERJ - Analyst Report) E-175 regional jets in a deal worth $4 billion.

The State College and Topeka flights are expected to start from Jan 7, 2014, while the Elmira flight will begin from Feb 13, 2014. Both Elmira and Topeka are new destinations for United Airlines while the company connects States College from Washington’s Dulles International Airport.

This domestic expansion comes quick on the heels of the addition of another domestic route within United Airliones’ network. Recently, the company declared a new daily nonstop flight from Indianapolis to San Francisco from Jan 7, 2013 using Airbus A-319. The nonstop flight will connect one of the fastest growing metropolitan with United Airlines’ largest Pacific hub, thus aiding customers to fly across to North America, Asia and Australia.

In addition to domestic expansion, the company is also expanding its service internationally and has recently received approval from the U.S. Department of Transportation to offer nonstop flights from San Francisco to Chengdu in China.

United Airlines declared soft operating performance for the month of Aug, where both domestic airline traffic (measured by RPM) and domestic capacity (measured by ASM) reported a decline of 2.6% and 2.8%, respectively.

We believe the new routes will increase both capacity and traffic for United Airlines as these are expected to attract business travellers of this locality with better connectivity to Chicago – one of the largest business destinations in Eastern U.S.

United Airlines, which operates with JetBlue Airways Corp. (JBLU - Analyst Report) currently carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%