We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Give UAL Stock a Miss Currently
Read MoreHide Full Article
Key Takeaways
United Airlines' earnings estimates have fallen for Q3 2026, full-year 2026 and 2027.
UAL's Q2 2026 fuel expense surged 84% to $5.1B, with nearly $6B in added 2026 fuel costs expected.
United Airlines is trimming flights as elevated fuel costs make some marginal routes uneconomic.
United Airlines (UAL - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
UAL: Key Risks to Watch
Southward Earnings Estimate Revision: The Zacks Consensus Estimate for third-quarter 2026 earnings has moved 8.7% south in the past 60 days. For the current year, the consensus estimate for earnings has been revised 8.5% lower over the same period. Even for 2027, the earnings estimate has moved south. These unfavorable estimate revisions suggest brokers lack confidence in the stock.
Image Source: Zacks Investment Research
Dim Price Performance: The company’s price trend reveals that its shares have lost significantly so far this year, underperforming the Zacks Transportation sector’s decline.
YTD Price Comparison
Image Source: Zacks Investment Research
Weak Zacks Rank: UAL currently carries a Zacks Rank #5 (Strong Sell).
Other Headwinds: Labor and other nonfuel expenses remain a margin constraint. Salaries and related costs rose 6.2% year over year in second-quarter 2026, while CASM-ex increased 6.1% as labor agreements and lower capacity raised unit costs. Management expects third-quarter CASM-ex to be the 2026 peak, but reduced flying keeps unit-cost pressure elevated until larger-gauge aircraft begin helping efficiency in 2027.
United Airlines is trimming flying when fuel makes marginal routes uneconomic. Management said in September 2026 that some December flights would be removed and further first-quarter 2027 adjustments were possible if fuel stayed elevated. These reductions protect cash generation but can limit near-term revenue capture while fixed costs are spread across fewer seat miles.
Jet fuel remains the largest near-term earnings risk. Second-quarter 2026 fuel expense increased 84% year over year to $5.1 billion, and United Airlines expected nearly $6 billion of added 2026 fuel expense compared with its initial outlook. In September, management said fuel had risen rapidly again and that full recovery through fares occurs with a lag because some fourth-quarter tickets were already booked.
Bearish Industry Rank: The industry to which UAL belongs currently has a Zacks Industry Rank of 233 (out of 247). Such an unfavorable rank places it in the bottom 6% of Zacks industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
In fact, a robust stock in a weak industry is likely to underperform an ordinary stock in a strong group. Therefore, considering the industry’s performance becomes imperative.
Stocks to Consider
Investors interested in the same sector may consider better-ranked stocks like Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) .
EXPD has an expected earnings growth rate of 28.5% for 2026. The company has an encouraging earnings surprise history. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.2%.
Seanergy Maritime Holdings currently carries a Zacks Rank #2 (Buy).
SHIP has an expected earnings growth rate of more than 100% for the current year. The company also has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Investors Should Give UAL Stock a Miss Currently
Key Takeaways
United Airlines (UAL - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
UAL: Key Risks to Watch
Southward Earnings Estimate Revision: The Zacks Consensus Estimate for third-quarter 2026 earnings has moved 8.7% south in the past 60 days. For the current year, the consensus estimate for earnings has been revised 8.5% lower over the same period. Even for 2027, the earnings estimate has moved south. These unfavorable estimate revisions suggest brokers lack confidence in the stock.
Dim Price Performance: The company’s price trend reveals that its shares have lost significantly so far this year, underperforming the Zacks Transportation sector’s decline.
YTD Price Comparison
Weak Zacks Rank: UAL currently carries a Zacks Rank #5 (Strong Sell).
Other Headwinds: Labor and other nonfuel expenses remain a margin constraint. Salaries and related costs rose 6.2% year over year in second-quarter 2026, while CASM-ex increased 6.1% as labor agreements and lower capacity raised unit costs. Management expects third-quarter CASM-ex to be the 2026 peak, but reduced flying keeps unit-cost pressure elevated until larger-gauge aircraft begin helping efficiency in 2027.
United Airlines is trimming flying when fuel makes marginal routes uneconomic. Management said in September 2026 that some December flights would be removed and further first-quarter 2027 adjustments were possible if fuel stayed elevated. These reductions protect cash generation but can limit near-term revenue capture while fixed costs are spread across fewer seat miles.
Jet fuel remains the largest near-term earnings risk. Second-quarter 2026 fuel expense increased 84% year over year to $5.1 billion, and United Airlines expected nearly $6 billion of added 2026 fuel expense compared with its initial outlook. In September, management said fuel had risen rapidly again and that full recovery through fares occurs with a lag because some fourth-quarter tickets were already booked.
Bearish Industry Rank: The industry to which UAL belongs currently has a Zacks Industry Rank of 233 (out of 247). Such an unfavorable rank places it in the bottom 6% of Zacks industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
In fact, a robust stock in a weak industry is likely to underperform an ordinary stock in a strong group. Therefore, considering the industry’s performance becomes imperative.
Stocks to Consider
Investors interested in the same sector may consider better-ranked stocks like Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) .
Expeditors currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EXPD has an expected earnings growth rate of 28.5% for 2026. The company has an encouraging earnings surprise history. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.2%.
Seanergy Maritime Holdings currently carries a Zacks Rank #2 (Buy).
SHIP has an expected earnings growth rate of more than 100% for the current year. The company also has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.