Is United Airlines a good stock to buy?

United Airlines can be a good stock to buy if you believe good times are ahead for the economy and that the post-pandemic travel boom will continue. However, if you're worried about a recession or fuel prices, United Airlines and other airline stocks are best avoided.

How do you invest in airline stocks?

You can invest in airline stocks by buying shares of individual airline companies or by purchasing shares of an ETF focused on airlines, travel and tourism, or transportation.

Who owns the most United Airlines stock?

The Vanguard Group, Primecap Management, and BlackRock (NYSE:BLK) are the largest institutional investors. Among insiders, CEO John Kirby, president Brett Hart, and executive vice president Kate Gebo own the most shares.

Is United Airlines publicly traded?

Yes. United Airlines trades on the Nasdaq stock exchange under the ticker UAL.

How to Buy United Airlines Stock (UAL)

By Robin Hartill, CFP – Updated Dec 30, 2025 at 3:41 PM EST | Fact-checked by Frank Bass

Key Points

United Airlines trades under UAL on Nasdaq, easy to buy via brokerage by entering the ticker and choosing order type.
United plans to add 800 aircraft by 2032 aiming to increase seats per route, potentially reducing costs.
Despite challenges, United's low forward P/E ratio vs peers indicates possible stock undervaluation.

United Airlines (UAL -1.44%) was one of the hardest-hit airline stocks during the COVID-19 pandemic, with shares shedding roughly half their value in 2020. But as air travel continues to soar post-pandemic, you may be wondering how to invest in United Airlines to cash in on that demand.

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Investing in airline stocks isn't for the faint of heart. Airlines, in general, are a highly cyclical business, meaning they're prone to big booms and busts, depending on the overall health of the economy. Airlines also face cutthroat pricing competition in a business that's capital-intensive and hugely vulnerable to fuel price increases. Still, there are a few reasons an investor might consider adding United Airlines stock to their portfolios.

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United Airlines airplane — Image source: Getty Images.

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How to invest in United Airlines stock

United Airlines trades on the Nasdaq stock exchange. Just follow the steps below:

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for United Airlines: Enter the ticker "UAL" into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Should you invest in United Airlines?

There are a few things to know if you're considering United Airlines for your portfolio:

It trades at a lower forward P/E ratio relative to its peers. United's forward P/E ratio is less than 8, which is lower than rivals American Airlines (AAL -1.11%), Delta Airlines (DAL -1.89%), and Southwest Airlines (LUV -1.65%). A forward P/E ratio has some limitations, but when a company's P/E ratio is low compared to similar stocks, it can suggest a stock is trading at a relative bargain.
United is making a big investment in upgrading its fleet. The airline's United Next strategy could help it boost its efficiency in the long term. United plans to add 800 narrow-body and wide-body aircraft to its fleet through 2032, which will essentially translate to larger planes with more seats flying the same routes. In 2019, United averaged just 104 seats per North American departure, lagging behind most other airlines. But by 2027, the carrier aims to increase the number by 40%, which, it says, will lower per-seat costs.
The airline is focused on adding international routes. United has also been rapidly adding international destinations, which could pay off since long-haul flights tend to be more profitable for airlines. However, it also poses risks because international travel is more volatile. People are less likely to plan major trips abroad if they're worried about their finances or if there's geopolitical uncertainty. This could prove especially risky in 2025, as some countries have issued warnings against traveling to the U.S. due to President Donald Trump's aggressive immigration crackdowns.
Troubles at Newark Airport are especially bad for United. Ongoing equipment outages and chaos at Newark Liberty International Airport are hitting United Airlines harder than its peers, considering that it operates about 70% of the airport's flights -- and the troubles come just ahead of peak summer travel season. United CEO Scott Kirby recently said on CBS's "Face the Nation" that issues at Newark would have a financial impact on the company, though he didn't discuss specifics.

It's also important to be aware of the broader challenges of investing in airlines: People tend to cut air travel during recessions. Legacy carriers like United face fierce price competition from budget airlines. Plus, running an airline is enormously expensive due to the high costs of buying or leasing aircraft, staffing, maintenance, and fuel.

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NASDAQ: UAL

United Airlines

Today's Change

(-1.44%) $-1.86

Current Price

$127.19

Key Data Points

Market Cap

$42B

Day's Range

$124.00 - $129.50

52wk Range

$82.42 - $138.77

Volume

1.9M

Avg Vol

6.2M

Gross Margin

28.69%

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Does United Airlines pay a dividend?

United Airlines doesn't pay dividends. The airline hasn't paid quarterly dividends since 2001, although it did pay a special dividend of $2.15 in 2008. Moreover, in its latest 10-K filing with the SEC, United says it doesn't intend to pay a dividend in the foreseeable future.

U.S. airlines were initially prohibited from issuing dividends as part of their COVID-19 bailout from the federal government. Since then, airlines, including Southwest Airlines and Delta Air Lines, have resumed dividend payments.

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How to invest in United Airlines through ETFs

If you don't want to buy individual shares of United Airlines, an alternative is to invest in an exchange-traded fund (ETF) that includes the stock in its holdings. Although you'd get a small amount of exposure through an S&P 500 ETF or a total stock market ETF, you could invest in an ETF that specializes in airlines, travel, or transportation. Examples include:

U.S. Global Jets ETF (JETS -0.68%): The ETF is focused exclusively on the airline industry. Its 50 holdings include commercial airlines, aircraft manufacturers, airport operators, and companies that supply internet and other services to airlines. United Airlines is its fourth-largest holding, with a weight of just over 10%. The fund's expense ratio is 0.6%, which means $6 of a $1,000 investment would go toward fees.
First Trust Nasdaq Transportation ETF (NYSEMKT:FTXR): The ETF tracks the Nasdaq U.S. Smart Transportation Index, which provides exposure to U.S. companies in the transportation sector. The fund's 38 holdings have a concentration of almost 17% in airline stocks. United Airlines accounts for about 7% of its holdings. The fund has a 0.6% expense ratio.
SPDR S&P Transportation ETF (XTN -0.76%): This ETF tracks the S&P Transportation Select Industry Index, which consists of transportation stocks, including passenger airlines, along with companies that provide other types of air, marine, railway, and ground transportation services. About a quarter of the fund's 44 holdings are passenger airlines, including United. The 0.35% expense ratio on this transportation ETF amounts to $3.50 in fees on a $1,000 investment.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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Will United Airlines split its stock?

United Airlines has split its stock twice: The first time was a 1-for-2 reverse stock split in 1994, followed by a 4-for-1 split in 1996.

Don't expect to see United on the list of upcoming stock splits any time soon. Companies usually split their stock when share prices have climbed so high that they feel out of reach to many investors. Given that United's share price was hovering around the $80 mark as of mid-May 2025, it's highly unlikely that a stock split is on the horizon.

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The bottom line

United Airlines is once again profitable after being pummeled by the pandemic. It continues to grow its revenue thanks to surging demand for air travel and could benefit if international travel fully recovers, although it faces short-term headwinds from faulty Boeing (BA -0.33%) planes.

It's important to assess your risk appetite before you invest in United or any other travel and tourism stock. Due to the cyclical nature of the business, the fierce competition, and the capital-intensive nature of the business, only invest if you can afford to hang on during periods of short-term volatility.

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FAQ

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Investing in United Airlines FAQ

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About the Author

Robin Hartill, CFP, is a contributing writer at The Motley Fool. Robin’s work has also been published by Yahoo Finance, USA Today, and Penny Hoarder. She is a graduate of the University of Florida.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Robin Hartill, CFP has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing and JPMorgan Chase. The Motley Fool recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy.

How to Buy United Airlines Stock (UAL)

Key Points

How to invest in United Airlines stock

Should you invest in United Airlines?

NASDAQ: UAL

Key Data Points

Does United Airlines pay a dividend?

How to invest in United Airlines through ETFs

Exchange-Traded Fund (ETF)

Will United Airlines split its stock?

The bottom line

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FAQ

Investing in United Airlines FAQ

About the Author

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Investing in United Airlines FAQ

Is United Airlines a good stock to buy?

How do you invest in airline stocks?

Who owns the most United Airlines stock?

Is United Airlines publicly traded?

How to invest in United Airlines stock

Does United Airlines pay a dividend?

Will United Airlines split its stock?

Related investing topics

FAQ

NASDAQ: UAL

Key Data Points

Should you invest in United Airlines?

Is United Airlines profitable?

The bottom line

How to invest in United Airlines through ETFs