United Airlines outperformed expectations with another strong quarter in December.
There is solid growth potential in 2023 as domestic air travel spending remains pre-COVID levels of GDP. I am wondering it the stock appears to be too cheap?
United plan to purchase hundreds of aircraft from Boeing which acquires the asset instead of having to lease them and the asset generally holds value due to slow replacement production of new aircraft.
United isn’t even back to pre-COVID capacity levels and the industry should be soaring past 2019 levels now.
My only concern is the potential upcoming recession. The travel industry will get badly hurt which will be bad news for United’s share price. If the recession does not arrive or isn’t too bad, then this could be a good buy.
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