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United Continental Records Weak Traffic Figures for April
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United Continental Holdings, Inc.’s (UAL - Free Report) wholly owned subsidiary, United Airlines, reported dismal traffic figures for April. Consolidated traffic, measured in revenue passenger miles (RPMs), was 18.47 billion, up 5.1% from the year-ago figure.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) climbed 6.1% to 22.43 billion. However, load factor (percentage of seats occupied by passengers) declined 80 basis points (bps) to 82.3% as capacity expansion outpaced traffic growth. This decrease in the metric indicates inefficient capacity utilization, inducing vacant seats.
At the end of the first four months of 2018, the airline registered a 4.8% rise in RPMs to 68.32 billion while ASMs rose 4.3% to 84.41 billion, both on a year-over-year basis. Thus, load factor expanded 40 bps to 80.9%.
The company posted an on-time performance of 73% and a completion factor of 99.8% for the month.
The company’s continued expansion efforts are encouraging. It recently raised its stake in the Brazilian carrier, Azul S.A. (AZUL - Free Report) , to 8% from the previous 3.7%. Through this initiative, the airline aims to offer its customers with more connectivity options between the United States and Brazil. (Read more: United Continental Arm Ups Azul Stake to 8%, Shares Up)
Zacks Rank & Key Picks
United Continental carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are SkyWest, Inc. (SKYW - Free Report) and Cathay Pacific Airways Ltd. (CPCAY - Free Report) . While SkyWest sports a Zacks Rank #1 (Strong Buy), Cathay Pacific Airways carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest and Cathay Pacific Airways have rallied more than 56% and 14%, respectively, in a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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United Continental Records Weak Traffic Figures for April
United Continental Holdings, Inc.’s (UAL - Free Report) wholly owned subsidiary, United Airlines, reported dismal traffic figures for April. Consolidated traffic, measured in revenue passenger miles (RPMs), was 18.47 billion, up 5.1% from the year-ago figure.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) climbed 6.1% to 22.43 billion. However, load factor (percentage of seats occupied by passengers) declined 80 basis points (bps) to 82.3% as capacity expansion outpaced traffic growth. This decrease in the metric indicates inefficient capacity utilization, inducing vacant seats.
At the end of the first four months of 2018, the airline registered a 4.8% rise in RPMs to 68.32 billion while ASMs rose 4.3% to 84.41 billion, both on a year-over-year basis. Thus, load factor expanded 40 bps to 80.9%.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote
The company posted an on-time performance of 73% and a completion factor of 99.8% for the month.
The company’s continued expansion efforts are encouraging. It recently raised its stake in the Brazilian carrier, Azul S.A. (AZUL - Free Report) , to 8% from the previous 3.7%. Through this initiative, the airline aims to offer its customers with more connectivity options between the United States and Brazil. (Read more: United Continental Arm Ups Azul Stake to 8%, Shares Up)
Zacks Rank & Key Picks
United Continental carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are SkyWest, Inc. (SKYW - Free Report) and Cathay Pacific Airways Ltd. (CPCAY - Free Report) . While SkyWest sports a Zacks Rank #1 (Strong Buy), Cathay Pacific Airways carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest and Cathay Pacific Airways have rallied more than 56% and 14%, respectively, in a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>