UAL Stock Gains Over 6% — And There Is A Starlink Connection

• UAL CEO Scott Kirby said Starlink will be a differentiator for the airline compared to its competitors.
• Kirby said United is on track to achieve double-digit pretax margins by 2027 if current conditions continue.
• The airline will also continue to take part in industry consolidation opportunities in the foreseeable future.

Shares of United Airlines Holdings Inc (UAL) rose on Wednesday after the company’s CEO Scott Kirby said the airline expects Starlink internet to be available across its “whole fleet” by next year.

UAL stock closed 6.35% higher.

Starlink Will Differentiate UAL From Rivals: CEO

Speaking at the Bernstein 42nd Annual Strategic Decisions Conference, United Airlines CEO Scott Kirby said the airline is investing across every part of the cabin more than any competitor, from seatback entertainment to in-flight connectivity. He noted that passengers are already seeing and feeling the improvements onboard, adding, “We’re going to have Starlink on our whole fleet.”

“Well, Starlink on 100% of the fleet is going to be the biggest. That is going to be a differentiator versus every other airline. We're going to be the first to get there,” Kirby said.

UAL Sees Path To Double-Digit Pretax Margins In 2027

Kirby expressed confidence that the carrier can reach double-digit pretax margins next year.

“I am increasingly confident that 2027 will be double-digit pretax margins. All that has to happen is the current environment plays out. You don't need anything special for us to be at double-digit margins,” he said.

Kirby said oil prices have been elevated, while demand has remained strong. He added that as oil prices ease, the airline expects to move toward full fuel cost recovery, potentially sooner than previously anticipated. Overall, he said the company feels positive about the near-term outlook. 

Kirby Says UAL Will Stay Active In Airline Consolidation

Kirby said United Airlines “is going to participate in any consolidation for any time I can see in the foreseeable future,” coming weeks after American Airlines (AAL) reportedly rejected a merger approach.

He said he has long believed that the “big transaction” United had explored was the only deal that made economic sense for the carrier, but added that it would require a willing partner, which “clearly” is not the case.

Kirby also dismissed speculation around a potential deal with JetBlue (JBLU), saying he does not see a path for United to improve JetBlue’s margins enough to make such a transaction viable. 

Analysts Raise UAL Price Targets

Recently, according to TheFly, UBS raised its price target on United Airlines to $148 from $139 while maintaining a ‘Buy’ rating. The firm sees potential for around 50% EPS growth for several airlines for 2027.

Meanwhile, TD Cowen adjusted its price target on the stock to $150 from $142 and also reiterated a ‘Buy’ rating.

UAL Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment for the UAL stock has been “neutral” from “bullish” in the past 24 hours. Message volume was “high” and it has remained the same over the past one day.

The UAL stock has gained over 48% in the past 12 months.

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