NASDAQ: UAL
Key Data Points
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.
How to invest in United Airlines stock
United Airlines trades on the Nasdaq stock exchange under the ticker UAL. It's pretty easy to buy and sell shares of the Chicago-based airline (or any publicly traded stock, for that matter). Just follow the four steps below:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name 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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Is United Airlines profitable?
Yes, United Airlines has returned to profitability in the wake of the COVID-19 pandemic. The airline reported just over $57 billion in operating revenue for fiscal 2024 and diluted earnings per share (EPS) of $9.45. Net income was roughly $3.15 billion, up about 20% from fiscal 2023.
United also improved its profit margin, due largely to its focus on premium and business travel, along with the expansion of its international routes. The company also reported that revenues from its loyalty program rose 9%, while spending on co-branded credit cards offered in partnership with JPMorgan Chase (JPM -1.00%) climbed 12%.
However, the domestic market has been a challenge for United. Total revenue per available seat mile (TRASM) is an important metric in the airline industry that shows how much revenue is generated from all sources -- including ticket sales, other passenger revenue, and cargo -- for each available seat mile. United’s TRASM was down slightly in fiscal 2024 due to overcapacity on some domestic routes and growing pricing competition from low-cost carriers.
United's heavy exposure to business and premium travel, and its focus on international routes, coupled with its less-robust domestic business, could make it especially vulnerable to a recession.
In January 2025, United issued guidance forecasting adjusted earnings per share of $11.50 to $13.50 for fiscal 2025. However, it later noted in a U.S. Securities and Exchange Commission (SEC) filing that the economy is "impossible to predict this year with any degree of confidence," and issued a second projection, estimating that adjusted EPS would fall between $7 and $9 if there's a recession.
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.
Exchange-Traded Fund (ETF)
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 on United Airlines stock
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 -0.31%) 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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