Back to top

Image: Bigstock

United Airlines (UAL) Fined $1.9 Million For Tarmac Delays

Read MoreHide Full Article

The U.S. Department of Transportation (DOT) imposed a fine to the tune of $1.9 million on United Airlines (UAL - Free Report) for allowing multiple flights to sit on the tarmac for hours. This is the largest fine imposed by the government for lengthy tarmac delays. A tarmac delay occurs when a plane on the ground is either awaiting takeoff or just landed and passengers do not have the opportunity to get off the plane.

Federal rules require airlines (operating planes with 30 or more passenger seats) to give passengers a chance to disembark if a domestic flight remains on the ground for at least three hours or an international flight is grounded for at least four hours. The rule prohibiting long tarmac delays for domestic flights began in 2010 and was expanded to include international flights in 2011. Exceptions are allowed for safety, security or air traffic control problems.

Per DOT, the airline had kept onboard several passengers on 20 domestic and five international flights from December 2015 through February 2021 at various airports throughout the United States. A total of 3,218 passengers were affected in tarmac delays since they were not given a chance to deplane.  

Zacks Rank & Stocks to Consider

United Airlines currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector are Schneider National, Inc. (SNDR - Free Report) , CSX Corporation (CSX - Free Report) and TFI International Inc. (TFII - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected earnings per share (three to five years) growth rate for Schneider National, CSX Corporation and TFI International is pegged at 17.9%, 11.4% and 31.6%, respectively.