Latest Developments:
United Airlines (UAL) posted $14.85 billion in revenue for 3Q24, a 2.48% YoY increase, but net income fell 15.13%. The airline’s strong performance in domestic and international markets, especially Latin America and the Pacific, highlights its resilience. UAL’s expansion into new destinations and fleet growth should further boost revenue.

Investment Case:
Strong demand in air travel supports UAL's revenue growth, with the company expanding its fleet and international routes. The MileagePlus program also saw 13% membership growth. Margins are a focus, and even modest improvements will significantly boost profitability. Fleet expansion is expected to bring in an additional $4.3 billion in revenues.

Company's Valuation:
Based on UAL’s fleet expansion and margin improvement, DCF valuation suggests an implied share price of $138, presenting a 54% upside. Potential Boeing delivery delays could lower this upside but the long-term outlook remains positive.

Disclaimer: The above is an excerpt on a report written by our close associate, Selendis Research. Interested parties may check out the full report here on Seeking Alpha. All information provided is intended solely for general informational purposes. Seven Insights does not take into account individual financial goals or situations and does not provide personalized investment advice. Seven Insights is not a licensed securities dealer, broker, U.S. investment adviser, or investment bank.