Back to top

Image: Bigstock

United Airlines (UAL) to Resume Flights From U.S. to Tel Aviv

Read MoreHide Full Article

United Airlines Holdings, Inc. (UAL - Free Report) marks a major move in the U.S. airline industry as it becomes the first major U.S. airline carrier to resume flights to Israel since Oct 7, 2023, Hamas terror attack and war in Gaza.

UAL announced plans to restart flights from New York/Newark to Tel Aviv, effective Mar 2, 2024. On Mar 2 and 4, 2024, the initial Newark-Tel Aviv flights will be stopping in Munich to verify whether all service providers are ready to offer non-stop service to and from Newark. However, there will be no flights between Newark and Tel Aviv on Mar 3 and 5. UAL aims to begin daily non-stop flights to Tel Aviv starting Mar 6.

The airline is hopeful to start its second daily flight from Newark to Tel Aviv as early as May.

The resumed flights will be available for booking on and on the United app, alongside service on partner airlines, including Lufthansa.

UAL has come to this decision only after having a special discussion with security experts and government officials in the United States and Israel. UAL has also discussed with the Air Line Pilots Association and the Association of Flight Attendants to develop the protocols mainly aimed at ensuring safety. The company will continue to oversee the scenario in Tel Aviv and adjust the schedule as and when needed.

Over the past three months, shares of UAL have gained 10.7% compared with the 21.1% growth of the industry it belongs to.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank and Stocks to Consider

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

Some better-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX - Free Report) and SkyWest, Inc. (SKYW - Free Report) . Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.

The Zacks Consensus Estimate for 2024 earnings has been revised 6.1% upward over the past 90 days. GATX has an expected earnings growth rate of 3.68% for 2024. Shares of GATX have gained 18% in the past year.

SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 6.3% over the past 90 days. Shares of SKYW have surged 205.3% in the past year.

SKYW has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.

Unique Zacks Analysis of Your Chosen Ticker

Pick one free report - opportunity may be withdrawn at any time

United Airlines Holdings Inc (UAL) - $25 value - yours FREE >>

SkyWest, Inc. (SKYW) - $25 value - yours FREE >>

GATX Corporation (GATX) - $25 value - yours FREE >>

Published in