Back to top

Analyst Blog

The wholly owned subsidiary of United Continental Holdings Inc. (UAL - Analyst Report) − United Airlines – launched a new United Club lounge in San Francisco International Airport on Jun 8, 2014. Notably, in 2012, United Airlines had unveiled its first United Club lounge concept in Terminal 2 at Chicago O'Hare International Airport, followed by other destinations like San Diego, Seattle, Boston and London.

The new 5,000-square-foot facility is located on the airport’s mezzanine level near the ultra-modern Boarding area E in Terminal 3. The lounge displays classic black-and-white United photos on the wall interiors and offers facilities like bar and café areas and several power outlets.

All United Club members will receive complimentary snacks and beverages, while they enjoy free Wi-Fi connectivity relaxing in the 100-plus lounge chairs and specially designed Arne Jacobsen ‘Egg’ chair.

The new lounge adds to United Airlines’ existing domestic and international club spaces in the San Francisco airport. This will eventually be replaced by a more spacious lounge, scheduled to open in 2015.

San Francisco is an important airport for United Airlines, operating 300 daily flights to more than 90 destinations across the U.S. and around the world. The carrier serves more non-stop trans-Pacific destinations to and from the U.S. than any airline from other hubs within the country.  According to United Airlines, the new lounge will make the travelling experience for passengers much more exciting and enjoyable.

Chicago-based United Airlines remains constantly committed toward improving its level of services in air and on the ground. The premier carrier offers lie-flat seats on all long-haul international flights and provides extra legroom for economy class passengers, much better than any other U.S. carrier.

United Airlines had reported lackluster first-quarter 2014 results, missing the Zacks Consensus Estimate on both the lines. We believe opening up of such lounges will allow the company to increase its club membership count, thus paving the way for the attainment of its ancillary revenue target of $3.5 billion by 2015.

United Airlines currently carries a Zacks Rank #3 (Hold). Well-placed stocks worth considering within this sector include Delta Airlines Inc. (DAL - Analyst Report), American Airlines Inc. (AAL - Snapshot Report) and Alaska Airlines Inc. (ALK - Snapshot Report), all of which carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.