Air carrier United Airlines (NASDAQ:UAL) is on the verge of announcing an order for 60 Airbus A321 narrowbody planes, as reported by Reuters.
Additionally, the order could potentially include jets from aerospace major Boeing (NYSE:BA). With rising air travel, the demand for aircraft sales is ticking up. Last year, United ordered 100 787 Dreamliners and 100 737 MAX jets to cater to the post-pandemic boom. Impressively, United plans to receive nearly 700 planes by 2032, at an estimated cost of nearly $50 billion.
Despite robust demand, rising fuel prices have returned to trouble airlines. Last month, United stated that fuel prices had shot up by over 20% since the middle of July, leading to expectations of all-in fuel prices ranging between $2.95 and $3.05 per gallon. The company anticipates third-quarter revenue to increase in the range of 10% to 13%, alongside an EPS range of $3.85 to $4.34.
United is slated to announce its third-quarter numbers on October 17. Analysts expect the company to post an EPS of $3.43 on revenue of $14.42 billion for the quarter. In the year-ago period, it had posted an EPS of $2.81, comfortably outpacing the Street’s estimates of $2.28.
What Is the Future of UAL Stock?
Overall, the Street has a consensus price target of $69.69 on UAL, alongside a Moderate Buy consensus rating. This implies a 68% potential upside in the stock.
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