United Continental Holdings, Inc.’s UAL wholly owned subsidiary, United Airlines, reported unimpressive traffic numbers for January, with load factor (percentage of seats occupied by passengers) declining owing to capacity overexpansion.
Traffic, measured in revenue passenger miles (RPMs), was 16.33 billion, up 1.8% from the year-ago figure. O n a year-over-year basis, consolidated capacity (or available seat miles/ASMs) also gained 3.3% to 20.62 billion. However, load factor declined 120 basis points to 79.2%.
The company posted an on-time performance of 70.1% and a completion factor of 98.1% for the month.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote
The company’s prediction for first-quarter 2018 consolidated passenger unit revenues remains unchanged in the range of flat to up 2% year over year. Additionally, the carrier expects capacity to expand between 3.5% and 4.5% in the period. Pretax margin (adjusted) is projected to be flat year over year. Consolidated cost per available seat mile (CASM) excluding third-party business expenses, fuel & profit sharing is estimated in the band of flat to up 1% in the same time frame. While consolidated average aircraft fuel price per gallon is anticipated at approximately $2.11 in the first quarter, Effective Income Tax Rate is estimated between 22% and 24%.
Zacks Rank & Other Key Picks
United Continental carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the same space include Deutsche Lufthansa AG DLAKY, Air France-KLM SA AFLYY and Allegiant Travel Company ALGT. While Air France-KLM and Allegiant Travel carry the same bullish Zacks Rank of 2 as United Continental, Deutsche Lufthansa sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Deutsche Lufthansa and Air France-KLM have skyrocketed more than 100% in 2017. While the Allegiant Travel stock has rallied 28.7% in the last six months.
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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Continental Holdings, Inc. (UAL) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY) : Free Stock Analysis Report
Air France-KLM SA (AFLYY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research